Alcoa's push to claim $158 million in damages from Apache Energy over the 2008 explosion at the Varanus Island gas installation off the State's North West coast.
In a pre-trial judgment, Supreme Court Justice Rene Le Miere threw out two legal grounds on which Alcoa was basing its case.
But Justice Le Miere upheld that the case may involved a general breach of care by Apache.
He adjourned the case to July 23 at which time a trial date is expected to be set.
The Varanus gas explosion wiped out a third of WA's gas supplies and cost the economy up to $2.4 billion.
Burrup Fertilisers is also pursuing Apache over the incident through US courts.