LNG (LIQUIFIED NATURAL GAS)

Howard knocks back support for onshore Gorgon move

John Howard almost made it out of WA without entering the Gorgon Gas Project debate, along with the issues surrounding the sensitive A-class environment on Barrow Island, but it was not to be. At the eleventh hour the Prime Minister was forced to dispel any suggestions about federal funding to move the project onshore.

Howard knocks back support for onshore Gorgon move

Recently the WA Greens, along with sporadic support from the State Government and opposition, has floated the idea that the Federal Government would fund the relocation of the $6 billion project onto the mainland, after the project partners said it would cost $1 billion to move.

The proposal put forward called for the government to forgo around $1 billion in royalty payments, which would enable the partners to commit greater sums to the field development, including a move onshore.

However, Howard rejected the idea while the field operator ChevronTexaco said any move could affect the commerciality of the whole project.

The partners had assessed Barrow Island, Thevenard Island, the Burrup Peninsula, Maitland Estate and two sites in the Montebello's before deciding that Barrow met all applicable criteria.

The next step for the partners is to negotiate enough foundation contracts for its estimated 12.9 trillion cubic feet of gas before development can begin.

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