Already Shell-Dow Chemicals, Syntroleum and Methanex have scrapped around $4 billion worth of projects due to the ever increasing strength of the Australian dollar and now Japanese giants Mitsubishi, Itochu and steelmaker JGC have confirmed that they are looking at alternative locations in Asia and the Middle East to build a dimethyl ether plant.

Adding to the region’s woes is news that Canadian fertiliser giant Agrium is looking to pull out of its plans to build an ammonia plant after it failed to secure a suitable piece of land.

Agrium was previously in a joint venture with the Plenty River Corporation and engineering and construction contractor Thiess to develop the Dampier Nitrogen project. This eventually folded in an acrimonious split that saw the government award a 67 hectare piece of land on the peninsula, the intellectual property and all the environmental approvals to Plenty River and Thiess.

Agrium said that any alternative sites for its project would be more costly to develop and that the original plan was already struggling with capital cost blow-outs of over $100 million thanks to the strong Aussie dollar.

Competition from Asian, South American and Middle Eastern regions has compounded a system which has seen a deathly slow approvals process, land access issues, industrial relations issues and constant bickering between the State and Federal Governments over funding for vital infrastructure.

Currently only one project is under construction on the Burrup Peninsula, the Indian backed $645 million Burrup Fertilisers, which is due for completion in July next year.