Beach Energy boss Brett Woods concerned by looming gas shortages in the east coast market

Beach Energy boss Brett Woods says he’s concerned by looming gas shortages in the east coast market and has warned new supply is taking too long to come online.

But there are encouraging signs governments are rethinking their aversion to gas projects, he said.

The Adelaide-based company also locked in Ryan Stokes — chief executive of Seven Group Holdings — as chair on Friday. Seven Group Holdings is a key stakeholder in West Australian Newspapers Limited, publisher of The West Australian.

“I am concerned about the east coast gas market,” Mr Woods told The West Australian.

“There’s plenty of gas across the broader east coast that is taking too long to come to market.”

His comments follow ongoing warnings that the eastern market could face shortages before the end of the decade.

Earlier this year, the Australian Energy Market Operator rang the alarm that supply may be inadequate over winter — although that dire outcome was avoided.

The industry has been frustrated for years that potential projects were tangled in approval delays. Victoria first put a moratorium on onshore gas exploration and development in 2012, while the large Narrabri field in New South Wales has been under consideration for years.

It has come amid heightened scrutiny about the industry’s environmental impact, especially in the role of emissions driving climate change.

Mr Woods said Governments were becoming positive about approvals.

He said Beach had secured the first offshore project licence in Victoria for a decade.

“I’m supportive of the current government in Victoria. They have made significant positive moves in support of the gas market,” he said.

“Since (Federal Resources Minister Madeleine) King put out the future gas strategy, the conversation about the role of gas in the country has improved significantly.”

“To further implement renewables, you really have to rely on gas as your firming partner.”

But on the west coast, alarm about looming shortages has largely subsided — at least until later in the decade. Mr Woods said producers needed to make sure local demand was met and the forecasts now suggested it would be.

He also welcomed the Western Australian Government’s move to allow exports of onshore gas until 2030.

The WA Government introduced a shock ban on those exports in 2020 and was then forced to wind back the policy three times. The new rules mean 20 per cent of gas found onshore can be sold overseas for the next five years.

Beach co-owns the Waitsia gas project in the Perth Basin with Mitsui & Co. That project was given the first exemption to the onshore ban.

Waitsia is scheduled to come online early next year. That’s unchanged from the most recent market update, although the initial targeted start up was late 2023.

Beach will drop in 15 operating and commissioning staff into the Mid West project to help steer the development to the finish line.

“If any of the other parties across the Perth Basin would like to accelerate gas to export markets I’ve got an opportunity to help process their gas and deliver that,” Mr Woods said.

“Waitsia is open for business.”

Moves by the State Government to push big producers including Woodside Energy into supplying more gas to the local market were also welcome, he said.

Beach posted a 10 per cent lift in quarterly production in September to be 5.2 million barrels of oil equivalent.

Shares lifted 2.5 per cent to $1.25 each.