Western Australia’s Third Major Liquefied Natural Gas Processing Site Created

Western Australia’s Third Major Liquefied Natural Gas Processing Site Created

Western Australia Premier Colin Barnett

Government Welcomes $29 Billion Investment

Victor P Taffa

  • Confirms WA’s status as major global LNG supplier
  • 6,500 jobs created during first six years of project
  • Creation of third major LNG processing project

The State Government has welcomed Chevron’s announcement of a Final Investment Decision on the Wheatstone project.

This follows the State Government approving a historic State Development Agreement with Chevron Australia Pty Ltd earlier this month and final environmental approvals by both the State and the Commonwealth. This secures the Wheatstone Project and creation of Western Australia’s third major Liquefied Natural Gas processing site.

“This project will help position Western Australia as the world’s second-biggest supplier of LNG.” Premier Barnett said

Wheatstone, along with other committed LNG projects and the North-West Shelf, will produce a combined 45 Million tonnes p.a. of LNG within the next few years, which will account for 25 % of current world production levels.

Currently the North-West Shelf produces 17 Million tonnes p.a. which represents 9% of the world’s LNG.
LNG production from WA is set to reach more than 60 Million tonnes a year by 2020.

“The Wheatstone project, near the Pilbara town of Onslow, is expected to create 6,500 jobs at peak construction and deliver an estimated $17 Billion to Australian businesses and services over the life of the project.” the Premier said.

Site works are due to begin before the end of this year, and the first delivery of LNG from 2016.

“The $29 Billion project includes development of offshore gas fields, a 225 km pipeline, port facilities and an initial two LNG trains with a combined annual capacity of 8.9 Million tonnes.” Premier Barnett said.

“The State Development Agreement ensures important benefits for West Australians, including opportunities for local employment and industry participation, from a project that is expected to operate for at least 50 years.”

“One of the key benefits for the people of WA is that Chevron will build a domestic gas plant to feed 15 % of the gas from the Wheatstone petroleum fields into the State’s energy market. This will ensure a safe, secure and reliable supply of electricity for the State.”

“The project will deliver significant benefits for the local community, with Chevron and its partners, and the State Government investing more than $250 Million on community and public infrastructure in Onslow, including the upgrade of the town’s water and electricity supplies.” Premier Barnett said.

“This has been the quickest and smoothest approval process for a major project in my experience. I want to thank Chevron; the joint venture partners Apache, KUFPEC, Shell; the Shire of Ashburton, Department of State Development, and the other State Government departments including Mines and Petroleum, Environment and Regional Development.”

“I’d also like to thank the Thalanyji People for their co-operation and support of this project.”

“As part of the agreement, the State will also contribute $10 Million of Royalties for Regions funding towards a community development fund and meet all operational and staffing costs for services such as health and education.” Premier Barnett said.

Fact File

  • Future expansion of the LNG Plant could support a total of five LNG trains with an expected total capacity of 25 Million tonnes p.a.
  • Ashburton North will also accommodate BHP Billiton’s Macedon domestic gas plant, and future downstream gas processing industries