The latest major disruption to Western Australia's domestic gas supplies has once again exposed the state’s energy vulnerabilities as a result of its dependence on gas from a limited number of supply sources in the North West.

The state’s peak business organisation, the Chamber of Commerce and Industry of Western Australia, is concerned that for the second time this year gas supplies to the state have been compromised, forcing business and industry to use less efficient and more costly fuel sources.

For a state that is the economic powerhouse of the nation - generating jobs, investment, wealth and opportunities for all Australians - it is essential that local business and industry has certainty and security of supply.

The latest disruption exposes the state's dependence on a limited number of gas production plants and highlights the need to implement policies that encourage the development of a more diverse primary fuel base. Any state energy policy should consider the full range of energy sources available including gas, coal, nuclear and renewable energy.

CCI has been a leader for some time in calling on the State Government to develop as a matter of urgency a comprehensive state energy policy that would act as a blueprint for WA's future energy needs.

Government can further assist by streamlining the state's planning and approvals processes to encourage greater exploration and development of new energy sources.

A long term energy policy would also give business and investors a greater degree of confidence about the state's energy future, both for export and domestic customers, and provide the market with pointers to potential investment opportunities.

With the safety of workers assured it is now important that gas supplies from the Varanus Island gas operation are restored as soon as possible.

Statement by CCI Chief Executive James Pearson