WA to benefit from growing global demand for LNG as production increases

4/5/98

Premier Richard Court said today that Western Australia would reap the benefits of the growing global demand for a cleaner energy source as the State's production of LNG increased.

Mr Court said the Gorgon project and the expansion of the North West Shelf were expected to come on-stream early next century and would position WA as one of the world's leading LNG producers.

"By 2010 we predict WA will supply at estimated 15 per cent of the world's LNG," the Premier said.

Later today Mr Court will officially open the Exhibition for the Twelfth International Conference on Liquefied Natural Gas at the Burswood Dome. The conference is the first to be held in Australia and has attracted 2,000 representatives from the LNG industry from throughout the world.

Mr Court said the conference, which is the biggest ever held in Perth, was a unique opportunity for the State to highlight to the world its unlimited potential to produce and supply quality LNG.

"WA is rich in resources and the State's fast expanding oil and gas industry has grown to become the nation's number one producer," he said.

"I am confident that history will record the next decade as the most exciting period of growth for the oil and gas industry in WA."

Mr Court said WA had developed an excellent reputation as a reliable, competitive supplier of LNG.

"This much envied reputation coupled with the State's competitive advantages such as location and stability will be significant factors in the future development of the industry," he said.

Despite Asia's current economic difficulties, the region's increased demand for a clean economic energy source is not in doubt for the long term.

Mr Court said China and other other countries such as India, the Philippines and Thailand had been recognised as possible substantial future customers for WA LNG. It also hoped that the State's existing markets of Japan, Korea and Taiwan would expand.

"As China undergoes modernisation and emerges as a global industrial giant the demand for a reliable and efficient source of energy will grow significantly," the Premier said.

"China now accepts that LNG is a competitive energy option for its coastal provinces and that WA could meet its supply demand."

Mr Court believes the close relationship WA has forged with China will assist the Government in its bid to become the country's preferred supplier of LNG.

Media contact: Casey Cahill 9222 9475