Temporary reprieve to shore up domestic supply of gas

A "short-term political fix" of restrictions on gas producers is expected to be enough to prevent a shortfall in domestic gas in Western Australia.

The updated Domestic Gas Policy to be announced on Thursday will require new or expanding projects to reserve 80 per cent of gas produced for the domestic market, rising to 100 per cent from 2031, according to local media.

Industry peak body Australian Energy Producers said it welcomed the decision to open up onshore production for export - as the sector called for - to make more projects viable and underpin domestic supply.

"More gas will be needed to serve rising demand supporting renewables in electricity generation as coal is phased out," WA director Caroline Cherry said.

She said new transparency measures would show how gas companies were meeting their obligations to the domestic market.

But the industry says changes should be reviewed in a few years to check whether government policy was supporting new gas developments and access to export markets.

A recent inquiry recommended onshore gas producers should be given access to the lucrative LNG export market "only if the domestic market is adequately supplied and is expected to be well supplied for a period of time".

Opposition energy spokesman Steve Thomas said the policy update "looks like a short-term political fix".

Dr Thomas said it was essential for WA's heavy industries that use gas to access adequate supplies.

"This was highlighted by the Gas Statement of Opportunities released by the Australian Energy Market Operator last December that suggested we will be short 105 petajoules of gas up until 2026," he said.

But he conceded the state government had provided a greater level of certainty for investors by defining the allowance for new exports, before taking it back to a complete ban.