The Gillard Government has welcomed today's final investment decision by the Gladstone LNG partners to proceed with the development of the US$16 billion Gladstone Liquefied Natural Gas (LNG) Project.
This project further consolidates Queensland's position as an emerging major production and export hub for LNG and will deliver significant local, state and national economic benefits.
Minister for Resources and Energy, Martin Ferguson AM MP said that today's announcement was particularly welcome news at a time when Queensland is experiencing immense hardship as a result of the current extreme weather events.
"While current efforts remain appropriately focussed on search and rescue efforts, ensuring the safety of people in the affected areas and the provision of immediate assistance as events continue to unfold, it is positive news that even in the midst of this crisis companies are still making substantial investments in the state’s resources and energy future.
"This project and economic development more generally is important in underpinning the skills, tax revenue, wealth and capacity to respond and re-build in the aftermath of these tragic events.
"The benefits of the Gladstone LNG project will be both immediate and continue over the longer term with the creation of 1,500 jobs in the first half of this year.
"In total it is estimated that the project will deliver 5,000 jobs during construction and 1,000 permanent positions, with additional flow-on benefits to service industries and communities, particularly in regional areas.
"Australia is currently the world's fourth largest exporter of LNG and projects such as this one, as well as other major developments off Australia's north-west are projected to increase this ranking to second by 2015.
"The supply contracts and investment partnerships negotiated as part of the Gladstone LNG project also reflect the importance of our relationships with the Republic of Korea, Malaysia and France.
"This is the second major coal seam gas to LNG project to go ahead in Queensland and is further evidence of the increasingly important role Australian LNG has to play in delivering on the twin objectives of transitioning to cleaner fuel sources while maintaining energy security both domestically and amongst our trading partners.
"Today's announcement reaffirms the global attractiveness of Australia as an investment destination and as a reliable trading partner for energy commodities."
The two processing trains planned for the Gladstone LNG Project will have a combined capacity of 7.8 million tonnes per annum with first cargo expected in 2015.
The Gladstone LNG Project is subject to more than 300 Commonwealth environmental conditions, in addition to those imposed by the Queensland Government.
This project will be joint venture between Australian company Santos, Malaysia's PETRONAS, Total of France, and KOGAS of Korea (subject to regulatory approval).
Further information about the project is available at http://www.glng.com.au.