The Environmental Protection Authority and the Conservation Commission released their responses to Chevron's environmental, social and economic impact reports in July with a unanimous rejection of the proposal on environmental grounds, while it was given the thumbs up on economic projections by an independent consultant.
However, both sides of Western Australian politics have displayed support for the development in recent weeks and it has been suggested that Cabinet approval is almost a rubber stamp affair.
Development is still a number of years away even if the government gives in-principle approval for the use of Barrow Island with the proposal destined to go before parliament for formal statutory approval, followed by the formal statutory environmental processes of both the state and the Commonwealth.
The next step for ChevronTexaco will be to market Gorgon LNG in an increasingly competitive global market. Currently ChevronTexaco has asked only for in-principle approval for the project as development cannot progress without a secured customer base.
On the upside forecasters are predicting a massive growth in LNG markets around the world as environmentally conscious countries search for cleaner fuel sources. The energy hungry Asian market has already sparked an increase in LNG production throughout the region resulting in tight competition for supply contracts from countries such as Qatar, Brunei, Indonesia, Russia and Australia.
Australia's existing NWS LNG project is actively marketing in a bid to underpin the development of a fifth production train with likely targets being South Korea and China.
The West Coast of America is seen as a likely target for Gorgon LNG with an affiliate of ChevronTexaco already signing a Memorandum of Understanding (MOU) with the Gorgon Joint Venture for the supply of LNG.
Under terms of the MOU, the unnamed affiliate will enter into negotiations, the details of which are confidential, with the Joint Venture which could lead to the supply of at least 2 million tonnes of LNG annually over a 20-year period, beginning in 2008.
