Earthworks have begun on the water pipeline although the project's principal construction contract is yet to be awarded. Start-up is planned for mid-2005 with a production aim of 760,000 tonnes of ammonia per year.

The plant is the sole survivor of an ambitious project to create a Burrup industrial estate after two US companies recently pulled out of billion dollar developments in the area. Syntroleum Corporation, walked away from its $1 billion Sweetwater gas-to-liquids proposal because it could not raise the money.

Methanex scrapped plans for a $2 billion methanol project as it was no longer financially viable with the stronger Australian dollar.

Another three projects, worth $3 billion, have been proposed for the Burrup, near Karratha, but of these only London-based GTL Resources is believed to be close to getting the financing needed to build its gas-to-liquids project.

The Water Corporation is also building a $20 million seawater desalination facility on the Peninsula and the $136 million common use infrastructure package committed by the government is under way.