Wheatstone plant has potential to reduce gas prices

The Wheatstone liquid natural gas (LNG) plant was given the green light late last week and Western Australian premier Colin Barnett has told the Sydney Morning Herald that it has the potential to boost service reliability and reduce gas prices.

Out of the 8.9 million tonnes of LNG forecast to be produced annually from 2016, at least 15 per cent will be fed into back into the state's energy infrastructure.

A skills shortage in the resources sector has the potential to delay the project, along with others, meaning that the benefits may come later than first anticipated.

The town of Onslow, home to the new project will see the development of a gas-fired power station to deliver an electricity supply to the region.

The dollar value of the impact that the plant will have on gas prices in the home - in WA and around Australia - is likely to be uncertain until after the project is completed and fully operational.

In the meantime, households can investigate their options by comparing their energy rates with different suppliers.

By locking in a more competitive rate, homeowners can make real savings in gas expenditure.

Posted by Callum Fleming