00:00The Waitzier gas development, about three and a half hours north of Perth, is caught in a bind.
00:08Originally estimated to cost $700 million, the construction bill has almost doubled,
00:13and that's not its only problem.
00:15It was going to start at the end of 2023, and here we are into the back end of 2025,
00:23and it's only just commissioning.
00:25Owned by Japanese giant Mitsui and Australian firm Beach Energy,
00:28which is backed by media mogul Kerry Stokes 7 Group, Waitzier enjoys a privileged position.
00:34It was given a lucrative exemption to WA's onshore gas export ban
00:38by former Premier Mark McGowan in 2020.
00:41Did you discuss the exemption with either Kerry or Ryan Stokes?
00:45Yeah, look, I'm not going to any private conversations I have about commercial matters.
00:49On the strength of that, the partners struck deals to process the gas into LNG via the
00:54north-west shelf and supply overseas buyers from 2023.
00:57But amid the delays, they've turned to extraordinary measures to meet their international obligations,
01:03taking gas from the domestic market on the promise they'll return it from their own fields later.
01:09Domestic gas, when it's in the market in WA is for WA use, not for export.
01:14While neither Beach Energy nor Mitsui would comment,
01:17their backers have pointed out that domestic gas prices in WA have been falling despite Waitzier's
01:23exports. Experts, however, say that's a pure coincidence caused by the loss of some major gas customers.
01:29It's serendipity. It might be good business operations, but I think it goes against the whole
01:35idea that, you know, the gas in Western Australia is for the West Australians to consume.
01:40All forecasts say that is just a short-term phenomenon. Within a couple of years,
01:45we're going to be heading for a shortfall.
01:47A state government spokesman insisted Waitzier would eventually have to meet its domestic gas
01:52commitments. With the export exemption due to expire at the end of 2028, the opposition wants
01:57the state to uphold the integrity of WA's domestic gas reservation policy.
02:02So the domestic gas policy either stands up or it doesn't.
02:05Warning signs of gas market turbulence ahead.
02:10In the agreement and order for валity
02:12No life in the agreement?
02:13I had a backup.
02:14I was unable to consult this market toילk, Bellic,
02:16and órfarm
02:20Tая Spanish
02:23I have not been Verse 7
02:25I have not been Question 4
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