A looming domestic gas shortage in Western Australia is one of the McGowan government's key justifications for lifting a moratorium on fracking but tapping into existing export-focused LNG projects could fill the gap.
The WA government said the decision would extinguish perceptions of sovereign risk, avert potential legal action by the companies seeking to frack, create jobs, and boost domestic gas supply, which is projected to dip in coming years.
In saying fracking could be done with low risk to people and the environment, it relied on the findings of an independent scientific inquiry, which cited a December 2017 report by the Australian Energy Market Operator stating WA's domestic gas market was well supplied to 2020.
It said forecast demand would probably remain below 1100 terrajoules a day to at least 2027, well below current supply of 1659TJ a day.
But if domestic gas prices remain low, new reserves may not be developed and supply may not meet demand in the medium to long term, it said.
Mines Minister Bill Johnston said the pending shortage was a fact, with Woodside's North West Shelf in decline.
"Figures show there's a potential shortage in the mid-2020s," Mr Johnston told AAP.
"That isn't to say that at the time, there won't be other fields in production but at the moment, on approved projects, there is a gap."
Rod Campbell, research director at The Australia Institute, says it's outrageous WA could find itself with a potential domestic gas shortage, despite its 15 per cent reservation policy.
"How on earth is one of the world's largest gas exporters apparently running out of gas? The easy answer is it's being exported," Mr Campbell told AAP, adding arrangements under the reservation policy weren't transparent enough.
Government information suggests tapping into existing export-focused LNG projects could fill the gap.
A spokeswoman said at current demand levels, the WA market will need new gas sources within a decade.
But supply could come from sources including Woodside's Pluto plant, which will start to contribute to the domestic market with gas sourced from the Scarborough field between 2023 and 2025.
And when long-standing North West Shelf contracts end in 2020, the supply will be replaced by domestic gas commitments from Chevron's Gorgon and Wheatstone LNG projects.
Commissioning of the 200TJ a day domestic gas facility at Wheatstone is expected before the end of the year, while Gorgon gas is being delivered in two tranches.
The first of a little under 150TJ a day was supplied in 2016 and the second is expected by 2021.
However, the mines minister believes unconventional gas is a necessary part of the state's energy mix.
Mr Johnston said WA's four advanced fracking projects could collectively produce anything ranging from 100TJ a day, or nine per cent of the state's gas demand, to 100 per cent of domestic gas needs.
"No-one can sit here and tell you that either of those outcomes are going to happen because the projects haven't been finalised," he said.
