The Chevron-led Gorgon consortium plans to build a $15 billion liquefied natural gas plant and undertake an $850 million carbon capture and storage project on Barrow Island.

The LNG project, which has WA environmental approval but is yet to be constructed, lies in Federal waters so all royalties would go to the Federal Government rather than the State.

The Howard Government has refused to share royalties with WA but Rudd yesterday told ABC News that he thinks the State deserves its share.

“At present, WA does not receive any allocation of the Commonwealth’s resource tax from future developments like the Gorgon gas development,” he told the ABC.

“I’m proposing a different approach whereby WA would receive 25% from that into a WA infrastructure fund.”