The report, by Mark Drummond, says that the development will be given the green light by the Labor Government led by Premier Geoff Gallop at a cabinet meeting on 1 September, despite recommendations that its LNG processing plant proposed for Barrow Island not proceed for environmental reasons.

Drummond said that Premier Geoff Gallop, Treasurer Eric Ripper and state development minister Clive Brown held meetings with ChevronTexaco chairman and chief executive David O'Reilly on Friday for a final presentation.

Gorgon has reserves around 13 trillion cubic feet (TCF) of gas although the greater Gorgon area is thought to have reserves in excess of 40tcf, making the project substantially larger than the North West Shelf project.

The project seemingly has the support of both sides of the state parliament after opposition leader Colin Barnett revealed his support for the project at a state Liberal Party conference this month.

Currently the development proposal is open for public comment following the submissions by the Environmental Protection Authority and the Conservation Commission, which rejected the proposal on environmental grounds.

The project has signed a Memorandum of Understanding (MOU) for the supply of Liquefied Natural Gas (LNG) into west coast USA, which could lead to at least 2 million tonnes of LNG annually over a 20-year period, beginning in 2008.

Initial investment in the project is slated at $6 billion, but this will rise to $11 billion over the 25 year life of the project, while taxes and royalties generated by the development are expected to total $37 million.