Despite having all the necessary Government approvals, Syntroleum Corporation said it could not raise the money needed to build the $1 billion Sweetwater gas-to-liquids plant.

One of Syntroleum's bankers is Merrill Lynch, who were just blocks away from the 'Twin Towers' when they were attacked by aircraft-flying terrorists, while Enron - who would have purchased a large portion of the offtake - was forced to declare the biggest bankruptcy in US corporate history.

The company said the project, which was to produce 11,500 barrels a day of synthetic hydrocarbons such as solvents, lubricants and chemical feedstock, would be terminated at the end of October unless funds could be organised.

State Development Minister Clive Brown said the news was "disappointing". However there was nothing the Government would or could do to save the project. He rejected any suggestions that the pledge to spend $136 million on infrastructure such as roads, power and water was a waste.

Staying with the Burrup, the peninsula was also the focal point for a spat between the Gallop Government and the Opposition over gas development in the State.

Following criticism by the Opposition that the closing of the State's trade office in South Korea would harm LNG sales into North Asia, Dr Gallop responded by saying the biggest obstacle to WA winning more gas contracts was the Opposition's "negative attitude" towards industrial development on the Burrup Peninsula.