State's vast gas reserves will ensure future role in world LNG trade

30/11/99

Premier Richard Court says Western Australia's vast gas reserves will ensure the State remains a long-term major 'player' in the world trade in liquefied natural gas (LNG).
Mr Court was speaking at a function to commemorate the 10th year of LNG sales to Japan and the shipment of the 1,000th LNG cargo to Japan.
"With 75 per cent of Australia's known natural gas reserves off our north-west coast our future LNG trade is assured, while at the same time our State is seen as an ideal location for value adding to our gas to produce petrochemicals,"
Mr Court said.
"This week's announcement by Plenty River Corporation that the Burrup Peninsula is the preferred site for its proposed $800 million ammonia and urea plant is further confirmation of this potential."
Mr Court said that it was important to remember that the catalyst for the current level of investor attention was the North West Shelf Venture.
"The North West Shelf Project has been a massive undertaking that required foresight, courage and tenacity from all those involved - the joint venture partners, the customers and the State Government," he said.
"The trust and goodwill shown by all has resulted in ongoing rewards to all those involved and, most importantly, in significant benefits for the people of Western Australia."
Mr Court said that 10 years after the first shipment of LNG to Japan, during which there had been 100 per cent delivery record, it was important to consider that:

• the North West Shelf Project (NWS) is Australia's largest resource development, with an investment to date of some $12 billion;
• the project creates more than $3 billion annually in exports; and -
• the NWS supplies nine per cent of the world's LNG trade.

"With such a formidable record it is encouraging to see that the joint venturers are keen to invest a further $7.8 billion in expanding their facilities - including two LNG trains and associated facilities," Mr Court said.
"It is an exciting time in the continuing development of our State's LNG industry and we are seeing the next stage with the expansion of LNG production and the move into value-adding."
Media Contact: Casey Cahill 9222 9475