Eric Ripper

Eric Ripper

Deputy Premier; Treasurer; Minister for State Development

    Nation set to reap rewards from Gorgon project: Minister

    7/09/2007 8:40 PM
     
    7/9/07

    The environmental approval of the biggest resource project ever undertaken in Western Australia would reap even further economic rewards for both the State and the nation, State Development Minister Eric Ripper said today.

    Mr Ripper, in Sydney for the APEC conference, said the benefits of the multi-billion dollar project were massive and would generate thousands of jobs, billions of dollars in Commonwealth royalties and help secure the nation’s energy supplies.

    “This project holds massive potential for WA and the nation,” he said.

    “It means real, permanent jobs, better infrastructure, economic security and global opportunities.”

    The Minister said Federal Opposition leader Kevin Rudd had already recognised the rapidly growing importance of WA on the world’s resources stage and had pledged to share the Commonwealth royalties and taxes with the State if he became Prime Minister.

    “Mr Rudd understands that WA is the powerhouse economy in Australia and has promised to set aside 25 per cent of the future Commonwealth resource rent tax revenue from Gorgon for State infrastructure programs,” he said.

    Mr Ripper said under existing arrangements and on the basis of initial estimates, the project would generate about $17billion in net present value terms in revenue to the Commonwealth Government, while WA would receive just $300million.

    “But under Mr Rudd’s plan, Western Australia, which is now generating the lion’s share of the nation’s export wealth, will be able to develop and improve our performance on behalf of the nation even further.”

    The Minister said approvals for the Gorgon project had been effective and efficient, but welcomed the fact that it had fully complied with rigid environmental and cultural scrutiny by both the State and Federal Governments.

    Gorgon, a joint venture between the Australian subsidiaries of Chevron (the operator), ExxonMobil and Shell, consisted of:
    • a gas processing facility within the 300ha development envelope on Barrow Island, consisting of two 5 million tonne per annum LNG trains and carbon dioxide injection facilities;
    • subsea development of the Gorgon and Jansz gas fields, involving subsea pipelines from the fields to Barrow Island;
    • LNG shipping facilities to transport products to international markets; and
    • the future provision of domestic gas to the mainland.
    The project would also generate:
    • more than 6,000 jobs on an ongoing basis in associated industries right across the nation, with 1,700 jobs based in WA; and
    • increased export opportunities, with additional export income of $2.5billion a year.
    Mr Ripper said the Carpenter Government was working to ensure the strong economy delivered jobs and opportunities for all Western Australians now and into the future.

    He said the Gorgon project would also strengthen links with the international oil and gas community and help form research alliances and global opportunities for WA companies.

    The Minister said Gorgon would help promote skills and knowledge transfer with new technologies, such as CO2 sequestration and subsea technology, creating regional capacity for future growth.

    “The world is well and truly awake to WA’s reliability and capability as a major resources supplier,” Mr Ripper said.

    Minister's office - 9222 8788