page_title: 2008 Western Australian gas crisis
section_title: Other industries, businesses and domestic customers
hierarchical_section_title: 2008 Western Australian gas crisis / Impact / Other industries, businesses and domestic customers
caption_attribution_description: Central Park tower, with the spires of Wesley Church in foreground, Perth, Western Australia.
context_page_description: The Western Australian gas crisis was a major disruption to natural gas supply in Western Australia, caused by the rupture of a corroded pipeline and subsequent explosion at a processing plant on Varanus Island, off the state's north west coast on 3 June 2008. The plant, operated by Apache Energy, which normally supplied a third of the state's gas, was shut down for almost two months while a detailed engineering investigation and major repairs were carried out. Gas supply from the plant partially resumed in late August. By mid-October, gas production was running at two-thirds of normal capacity, with 85% of full output restored by December 2008.
  In a state heavily reliant on continuous supply of gas for industrial processing, manufacturing, residential use and electricity generation, the sudden loss of almost 35% of gas supply had immediate social impacts, and significant short and long-term economic effects. Many businesses were forced to curtail or cease operations, resulting in workers being stood down or forced to take annual leave, and the government requested that businesses and householders conserve energy usage.
context_section_description: The construction and hospitality industries were strongly affected by the energy shortage. Brick producers Midland Brick and Austral closed their kilns within the first week after the blast, and on 11 June, the Chamber of Commerce and Industry warned that 14% of local businesses could close. UnionsWA said thousands of workers were being stood down or made to take annual leave, and the secretary Dave Robinson said mining, timber, beef, pork, laundries and transport industries workers were worst affected. Supplies of gas and electricity to residential customers are protected by state government legislation introduced in 2006.
  The impact of the crisis on Wesfarmers' subsidiaries caused a slump in the company's share prices. Wesfarmers managing director, Richard Goyder, said, "At this stage, our best estimate is that the pre-tax impact on group profit will be up to $20 million per month at the current level of gas supply. A portion of that loss is expected to be recovered from insurance". The subsidiaries affected are CSBP, which can no longer produce ammonium nitrate, Wesfarmers LPG, which has delayed commissioning of a new liquid natural gas plant in WA, and Premier Coal, whose sales have been reduced due to the closure of some of its customers, such as Iluka Resources.
  There was speculation in the media on whether the AFL football game at Subiaco Oval on 21 June between the West Coast Eagles and Geelong Football Club should be moved from night to daytime, to avoid using the oval's lights. According to Western Power, the electricity used by the oval's lights for four hours of operation could power more than 1,300 homes, but a spokesperson from the Office of Energy said, "Effectively the amount of energy used to light a game at night is less than what would be used if those thousands of people were at home with lights and other services operating". Western Australian Trotting Association chief executive, Rob Bovell, said if they were forced to move races at Gloucester Park from night to day, they would "probably lose half a million dollars in turnover and our customers would drop by 70 percent. Clearly this would cause major damage to us financially because our business is set up to race at night time. However if we are using energy that is affecting emergency services we will close down tomorrow."
  Fifty representatives from shopping centres and office towers met on 16 June to discuss energy-saving ideas. The WA Property Council said "Non essential power including decorative lighting in shopping centres will be switched off. We'll also be looking at chillers and heating systems to ensure they use less power. At the moment we are in winter mode and they are running to heat the buildings so we will have to lower them, while main buildings will look at switching off non essential lifts". Perth's tallest building, Central Park, turned off its heating on 17 June, with General Manager Tim Ward saying, "We're not expecting anyone to be anything but compliant".
  Royal Perth Hospital's plans for coping with decreased gas supplies were leaked to the media at the end of June, which showed a 30% reduction in gas would cause phase 1, changing linen "only when soiled" and having "one towel per patient". Phase 2, a further 20% decrease, would result in "reductions in elective surgical procedures", "prioritisation of equipment for sterilisation", sourcing oxygen supplies from interstate and restricting patients' showers to "four minutes, second daily". Further reductions could lead to cancellations in elective surgery, rationing food and transporting "infectious linen" interstate for laundering.
  Industrial gas provider BOC reduced its supply of carbon dioxide to pubs for draft beer, whilst the shortage also threatened WA's wineries, who use carbon dioxide for bottling. BOC gave priority to the health industry, which uses carbon dioxide to sterilise equipment and in anaesthesia. The state's other major carbon dioxide supplier, Air Liquide, also shut down production, leading to fears that WA's largest pork abattoir would close.
  Westpac offere
caption: Central Park
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