The Tubridgi/Griffin gas gathering project off Western Australia's north-west coast is directly attributable to the Government's commitment to open the State's gas market to competition.
Deputy Premier Ian Taylor and Fuel and Energy Minister Geoff Gallop said today the project was also a reflection of the Government's development philosophy which encouraged investment and economic activity.
Commenting on the announcement that the project's joint venturers had reached agreement on a financing package, the Ministers said that in the longer term, gas-gathering infrastructure would continue to expand bringing both economic and environmental benefits to Western Australia.
The Tubridgi/Griffin project would be the second gas gathering venture to use SECWA's Dampier-to-Bunbury pipeline, allowing gas collected off the north-west coast to be sold into local markets.
Mr Taylor said the gas gathering project was proceeding in conjunction with the Griffin oil development with a total value of about $665 million.
"Following hot on the heels of the go-ahead for the $500 million Marandoo iron ore project and the opening of the production phase of the State's first gas-gathering project, the Tubridgi/Griffin project is another example of investor confidence in the State," Mr Taylor said.
"The project will provide important infrastructure to allow oil wells to deliver to the market gas which was previously flared into the atmosphere."
The company operating the Tubridgi/Griffin joint venture - Devex - would buy gas from the operators of three other fields and construct a new pipeline to link into SECWA's existing pipeline.
Dr Gallop said there was no doubt that competitive energy-pricing was a key factor in Western Australia's economic development. Deregulation of the gas market was part of the Government's overall energy strategy.
"The Government announced in The WA Advantage earlier this year that it would reform energy marketing to encourage industry, as part of a range of initiatives to reduce the real cost of energy," Dr Gallop said.
"These initiatives are already starting to produce benefits in the form of investment and jobs as well as contributing to the availability of cheaper sources of energy in Western Australia."