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Five licences offered for Gorgon project Tuesday September 1, 2009, 5:22 pm
The federal and Western Australian governments have offered five production licences for the liquefied natural gas fields of the Gorgon project, Prime Minister Kevin Rudd says.
The so-called joint authority - federal Resources Minister Martin Ferguson, and WA Mines and Petroleum Minister Norman Moore - has also offered to renew seven retention leases over other gas fields in the Greater Gorgon area.
"These fields will be developed sequentially to maintain production and extend the economic life of the project," Mr Rudd said in a statement from Barrow Island on Tuesday.
They will also be used to increase the supply of domestic gas into the Western Australian market, providing greater competition.
The joint authority has placed conditions on some of the retention leases to ensure that timely development is forthcoming.
In particular, it will require a mid-term review of the West Tryal Rocks gas field in two years time.
"The offer of the five production licences and seven retention leases is a further critical milestone in enabling the Gorgon joint venture to reach a final investment decision for the entire project," Mr Rudd said.
"These titles provide security of tenure over Greater Gorgon gas resources to provide the property rights Chevron, ExxonMobil and Shell need to sign off on Australia's biggest single investment - the $50 billion Gorgon LNG project."
The Greater Gorgon area has about 40 trillion cubic feet of gas, enough to underpin the project for more than 30 years.
The project will generate LNG exports worth around $300 billion over the next 20 years, providing jobs for 6,000 workers at the peak of construction and inject $33 billion into the economy over the next few years through the purchase of Australian goods and services.
"The project will also generate about $40 billion in revenue that will fund schools, hospitals, roads and infrastructure for the state and the nation for decades to come," Mr Rudd said.
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