Leadership Matters: Chevron Australia boss warns company ‘confused and frustrated’ by gas reservation battle

Chevron Australia boss Balaji Krishnamurthy says the company’s American head office is “confused and frustrated” about a proposed national gas reservation scheme. The Federal Government wants to force gas exporters to keep 20 per cent of production for local markets. That’s caused concern as to whether the policy will override WA’s existing 15 per cent rule, with mixed messages from the Commonwealth about how the two policies work together. The Federal Government is trying to balance between creating a framework that is fair to all States while also acknowledging the success of WA’s longstanding system. The final details have not been decided. Mr Krishnamurthy told a Leadership Matters breakfast hosted by The West Australian on Wednesday the domestic reservation debate added to a long list of political battles over energy that impacted the mood of investors. “We’ve seen over the last few years, and it has spanned several governments to be fair, this intervention in markets in one form or the other,” he said. “When you put it all together, this constant conversation, not too long ago we were talking about tax changes, now were talking about domestic gas. “The cumulative impact of these things really erodes investor confidence. Competition for capital is global in nature.” WA’s second-biggest industry has been under pressure across the political divide, with Labor’s reservation scheme mirroring a coalition promise in the 2025 election. The Greens have advocated for a 25 per cent tax on revenue while One Nation wants taxpayers to share risk in projects by partly socialising ownership. Premier Roger Cook previously said he had “received assurances” WA would not be affected though days later said he would be “holding my fire . . . until I see the details”. Gas users across the country have broadly supported the plan as it will push down prices for the fuel, including manufacturer Bluescope Steel, while environmentalists argue it will reduce need for new gas projects to be developed. American giant Chevron has been among the largest-ever foreign investors into WA, spending $80 billion with its partners to build the Wheatstone and Gorgon export plants. Plenty more cash is looming despite the political uncertainty. The company recently pressed go on the $3 billion stage three expansion of Gorgon to help keep the processing plants full for decades ahead. Mr Krishnamurthy also talked up the importance of cutting carbon emissions while keeping energy affordable and reliable. “Changing the mix to a lower carbon outcome while maintaining the reliability and affordability, and meeting rising demand, that’s a challenge we are up to,” he said. The company invested in Australia’s biggest carbon capture and storage project at Barrow Island which has so far pumped more than 12 million tonnes of carbon dioxide underground. Yet technical issues, including with water in the reservoirs, have meant the facility has performed far below target.