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Government encourages Gorgon LNG project

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John Moore MP _ ___ Senator Warwick Parer

^ftisterjfor Industry. Science.&-TourismZ> Minister for Resources and Energy


19 November 1997 348/97


The Federal Government has granted Major Project Facilitation (MPF) status to a proposed new Liquefied Natural Gas (LNG) project in the north west of Western Australia.

The Minister for Industry, John Moore, announced MPF status for the Gorgon LNG project today. MPF status provides the project with coordinated approval processes at Commonwealth and State government levels.

At full operation - in 2003 - the project is expected to produce about 7 million tonnes of LNG annually, generating almost $2 billion in export revenue.

The developers, West Australian Petroleum Pty Ltd (WAPET), plan to initially construct 10 production wells, gradually expanding this to 37. The wells are to be linked by underwater pipelines to shallow water gas gathering platforms. From these, the gas would be pumped to an onshore two-train LNG processing plant located on the Burrup Peninsula in Western Australia’s Pilbara region.

WAPET is to operate the project on behalf of its joint venture partners Chevron, Texaco, Shell and Mobil. The partners are conducting a study into the national economic benefits of the project. The detail provided in this study will include information about the number of jobs which are expected to be created during construction and operation.

"This investment is an enormous statement of confidence in Australia by the joint venture partners,” Mr Moore said. "The $9 billion project will enhance Australia’s position as a leading supplier of LNG to the Asian market.”

The Minister for Resources and Energy, Senator Warwick Parer, welcomed the decision.

"This is evidence of Australia’s growing reputation as an energy provider and resource processor,” Senator Parer said. ‘‘We are increasingly able to add value to our natural resources rather that merely exporting raw materials.”

Senator Parer also welcomed the developers’ commitment to reducing the project’s impact on the environment.

“I am pleased the partners have announced that they will be participating in the Government’s Greenhouse Challenge Program.”

The Greenhouse Challenge is a cooperative effort of industry and the Commonwealth Government which encourages companies to voluntarily reduce greenhouse gas emissions.

The Investment Promotion and Facilitation Program within the Department of Industry, Science and Tourism will coordinate the project’s MPF status.

Contact: Cheryl Cartwright Bob Baudino Peter Coghlan

CMR845 Mr Moore’s office Senator Parer’s office (WAPET) Gorgon Project

02 6277 7580 02 6277 7440 08 9263 6000