$2b trade-off hope for gas base
Colin Barnett has hinted the Woodside Browse consortium would need to fund a $2 billion oil and gas supply base at James Price Point in return for keeping key Browse Basin retention leases.
Mr Barnett yesterday expanded on his disappointment that Federal Resources Minister Gary Gray had waived the conditions that demanded the consortium process its Browse gas at James Price Point. Mr Gray made the decision on Friday because, he said, commercial realities for land-based processing were not viable and it was in Australia's best interests to ensure the gas was developed as quickly as possible, even if it was through floating LNG.
But Mr Barnett, a vocal opponent of FLNG, hit back yesterday, saying the Federal Government had gone "soft" and suggesting his Government would demand trade-offs before it granted the Woodside consortium relief from the James Price Point gas processing condition.
The consortium's three gas fields - Calliance, Brecknock and Torosa - are spread across seven retention leases, of which five are in Commonwealth waters.
Mr Gray's determination removes the James Price Point processing condition from five leases but leaves the conditions on the two WA-controlled leases.
Mr Barnett yesterday hinted that a commitment from the consortium to build a supply base at James Price Point, to service the broader Browse Basin oil and gas industry, could be sufficient for his support to axe the contentious development condition.
"At the end of the day, and it's not my perfect result, if we were to have the supply base built at James Price Point that would be something acceptable to the State Government because that would then start the development of (a broader precinct at) James Price Point for future LNG to come onshore," he said.
"There are other companies operating in the Browse Basin that intend to do LNG onshore, not offshore the project."
Asked whether he thought it would be appropriate for the Commonwealth Future Fund to fund an economy-building project such as James Price Point, Mr Barnett said that should not be necessary for a supply base he said would cost $1 billion to $2 billion.
"The (oil and gas) industry is big enough and rich enough and with deep enough pockets to fund its own infrastructure," he said. "Taxpayers shouldn't have to do that."
