State Government ministers including the Premier are pitching to east coast businesses to relocate to WA to capitalise on the State’s “embarrassingly” low gas prices.

As the Eastern States grapples with a gas supply crisis that is sending manufacturers to the wall, the Government and industry say prices for domestic gas in WA are the lowest on record.

With domestic gas prices in the east ranging between $12 and $16 a gigajoule, industry insiders said short to medium-term gas prices in WA were as low as $3gj.

Alinta chief Jeff Dimery, who runs WA’s biggest gas retailer, said the gas bonanza was not only a boon for consumers enjoying discounts off their bills of up to 30 per cent but was a potential industrial drawcard.

Mr Dimery said gas was one of the biggest input costs for many heavy industries and it was in the State’s interests to be luring east coast businesses hit hard by the gas squeeze.

“If this is sustainable for any length of time then it’s not unfathomable you might see some heavy industrial businesses from the east looking to relocate or at least shift production,” he told The Weekend West.

“On the one hand with the high gas prices in the east that sector is making noises about moving production offshore.

“If they’re prepared to move offshore and they’ve got $3gj gas in WA why wouldn’t they move to WA. It just makes sense.”

Premier Mark McGowan said WA had the lowest wholesale gas prices in the country and credited the State’s strong position on the domestic gas reservation policy, which was introduced by Alan Carpenter as premier.

Mr McGowan said the Government was “proactively working to attract new investment based on the availability and price of domestic gas” and cited Coogee Chemicals’ proposed methanol plant in Karratha as an example of the type of project he hoped would set up operations.

“There’s a saying in the gas industry that ‘the jobs follow the gas’ — so we’re actively encouraging investment in projects that utilise our gas,” he said.

Energy Minister Bill Johnston, who is also Mines and Petroleum Minister, confirmed he had held discussions with lithium processing companies that use gas about setting up in WA.

He said the situation had implications for electricity generation in WA, with gas increasingly replacing diesel by big users such as miners because it was cheaper and cleaner.

Gas Trading Australia boss Allan McDougall said gas typically made up a third of manufacturing companies’ costs and low prices were a major competitive advantage for WA.