Australia has taken another big step towards becoming the world’s second-largest exporter of liquefied natural gas (LNG), with the announcement of a positive final investment decision on the Chevron-led Wheatstone project. Resources and Energy Minister, Martin Ferguson AM MP congratulated the project’s Joint Venture Partners, Chevron, Apache, Kuwait Foreign Petroleum Exploration Company and Shell on their decision in Perth today.
“Global demand for LNG, particularly from the Asia-Pacific region continues to increase. By further developing Australia’s gas reserves the Wheatstone project will help capitalise on this growth, increase our market share and enhance our standing as a key world energy supplier,” Minister Ferguson said.
“The benefits flowing from the Wheatstone project will be felt right across the country with the contribution it will make to jobs, government revenues, export incomes and spending on Australian goods and services.
“Wheatstone is a very welcome addition to the significant investments that the Joint Venture Partners have already made in Australian petroleum projects.
“Chevron and Shell are major investors in both the North West Shelf LNG and Gorgon LNG Projects, and earlier this year Shell approved the Prelude Floating LNG project. Apache and KUFPEC have significant investments in Australian domestic gas and oil production operations, and Wheatstone heralds their entry into Australian LNG production.
“Wheatstone is also important for the contribution it will make to the energy security of Japan - Australia’s oldest and largest LNG trading partner.”
TEPCO will take 3.1 million tonnes of LNG annually from the project. The Kyushu Electric Power Company has agreements for additional LNG, as does KOGAS of Korea.
“Wheatstone joins the six new LNG projects that have taken final investment decisions since September 2007,” Minister Ferguson said.
“Together these projects represent around $140 billion in new investment and will give us more than 50 million tonnes of new production capacity on top of the existing 20 million tonnes of LNG capacity from the North West Shelf and Darwin LNG.
“The record pipeline of investment in resources and energy projects demonstrates that Australia remains a stable and competitive place in which to invest and build wealth, both for Australians and for shareholders.”
Independent economic modelling by ACIL Tasman indicates that the Wheatstone Project will generate around 6,500 direct and indirect jobs, with 3,500 directly in construction, $20 billion in tax revenues over the life of the project and $17 billion in spending on Australian goods and services.