"Today's landmark announcement signals the beginning of a new multi-billion dollar value-adding gas processing industry," Dr Gallop said. "It will have a significant impact on the Western Australian economy, delivering highly paid and highly skilled jobs for the State."

Dr Gallop said the project would employ 500 people during construction and 60 during operation. Construction was due to start early next year and would take 20 months to complete.

The plant, when operational, would produce up to 2,200 tonnes of liquid ammonia from natural gas each day over a minimum 25-year period - generating annual export income of $190 million.

"This project will trigger the construction of the State Government's $134 million multi-user infrastructure package on the Burrup Peninsula," the Premier said.

"It builds on the Chinese LNG deal in securing Western Australia's gas future.

"This is an exciting time for all Western Australians and I congratulate Burrup Fertilisers and all who have worked to bring this project to fruition."

State Development Minister Clive Brown recently met Burrup Fertilisers' parent company, the Oswal Group, in New Delhi to discuss the project and finalise outstanding issues.

Mr Brown said he was pleased the project had received the green light following final planning approval this week by the Shire of Roebourne and he thanked the shire for its support. The project had already received native title and environmental approvals.

"This is a very exciting development that will add yet another dimension to Western Australia's already broad portfolio of resource development projects and industries," Mr Brown said.

"The plant will use advanced production technology, expand our production capacities and create a new industry for the Pilbara.

"We hope this commitment will lead the way for many project proponents currently considering establishing projects in this area."

Plans for a new multi-user service corridor in the King Bay Hearson Cove industrial Area were consolidated in September.

As part of the multi-user infrastructure package, the Water Corporation will develop a 280 million litre per day seawater supply and brine discharge system, for cooling processes for the ammonia Plant and other projects in the precinct.

Seawater would also be used as feed to a desalination plant and the Dampier Port and Public Wharf would be upgraded to accommodate increased shipping and the loading of liquid ammonia.

The multi-user service corridor, seawater system and port upgrades would be used to support the Burrup Fertilisers plant and other billion dollar gas processing projects interested in setting up in the area.

Plant facilities will include a ammonia process unit, cooling tower and storage tanks; pumps, insulated pipelines and refrigeration units; power generation and sea water desalination units; utilities unit and control room; and administration, maintenance and warehouse units.

The gas for this project is being supplied by the Harriet Joint Venture from the Varanus Island production hub. The Harriet Joint Venture comprises three companies, namely Apache Energy, Kufpec Australia and Tap Oil.

Proponents of other projects currently earmarked for the Burrup include Methanex, Dampier Nitrogen, The Australian Methanol Company and Japan DME.