More gas is expected to flow through the state's online gas trading scheme following the resurrection overnight of the state's biggest energy generating unit, the 330 megawatt Collie power station.
Energy Minister Francis Logan said bringing Collie back on line would reduce the amount of expensive diesel being used for power generation, and make more gas available for industry.
"I'm expecting some gas to be released to the market almost immediately through the Gas Bulletin Board at current market levels, and further quantities of gas at distillate prices," Mr Logan said.
"This should add to the quite significant volumes of gas that have been made available on the bulletin board in recent days."
Mr Logan said at the close of business yesterday, 23 traders were registered on the bulletin board with publicly disclosed trades priced between $15.50 and $18.25 per terajoule.
"Larger volumes are starting to be offered, with postings up to 20 terajoules a day," the minister said.
Additionally, Mr Logan said the return of the Collie power station would increase the level of spare capacity in the electricity system and provide the opportunity for other power stations to undertake necessary maintenance and upgrade work in the period leading up to summer.
Partial gas supply from Apache Energy Ltd's Varanus Island gas facility is expected to resume mid next month while full production is not expected to be restored until the end of the year.