Gas Rush continues as Woodside proposes $2billion fifth LNG train

10/1/05
Western Australia's gas rush has continued with Woodside Energy submitting a proposal on behalf of the North West Shelf Venture participants to the Gallop Government for an expansion of its LNG plant on the Burrup Peninsula.
The massive project, worth about $2billion, would comprise a fifth LNG processing train and supporting fractionation, compressor and power generation facilities and a second LNG berth.
State Development Minister Clive Brown today said the proposal was a major vote of confidence in the WA economy.
"WA's gas rush is alive and well," Mr Brown said.
"Over the last four years, we have seen a massive expansion of the State's LNG market, including the record $25billion export deal with China, the construction of a fourth LNG train and second trunk line by Woodside and in-principle approval for the $11billion Gorgon project.
"Woodside's proposal to build a fifth LNG train cements Western Australia's status as the energy capital of the region and is another major economic milestone for the State under the Gallop Government."
The Minister said before final project approval was granted, the Government would carefully examine whether the proposal met all the State's requirements under the North West Gas Development (Woodside) Agreement Act 1979.
The project had already received its environmental approvals.
Mr Brown said a financial investment decision by the North West Shelf Venture participants to proceed with the expansion project was expected in the first half of 2005, subject to successful LNG marketing efforts.
Under the proposed expansion, the fifth LNG train would have a capacity of 4.2 million tonnes a year, the same as that for the fourth train which came into operation in September last year.
The proposal provides for the fifth train to be operational towards the end of 2008, lifting the total LNG production capacity of the project to 15.9 million tonnes a year.
The Minister said one of the major challenges for the project would be finding skilled workers, with the State's unemployment rate at a record low 4.3 per cent; however, a number of initiatives announced recently in the Gallop Government's Plan4Jobs Package would help, including:

• $1.1million in SkillingWA grants to provide 1,300 places in short training courses to upskill metal tradespersons, electricians and other key workers;

• $1.5million over three years to establish a skilled migration unit to attract skilled migrants to WA; and

• the establishment of a new career development centre in Perth.