Barnett hits back over Browse
Premier Colin Barnett has hit back at both sides of Federal politics over their support for floating offshore gas processing, arguing that development of the giant Browse gas field is about more than ensuring riches flow to Canberra.
"This is a great natural resource and we should not be looking at this solely in terms of revenue flow to the Commonwealth, where any revenues received would get lost in a Budget deficit," Mr Barnett told _WestBusiness _.
Federal Liberal shadow resources minister Ian Macfarlane yesterday became the latest to wade into the debate over Woodside's $40 billion Browse development.
He said he supported FLNG technology for the project if onshore development proved too costly, as many analysts expect.
This was to ensure the gas was developed quickly to provide operational jobs for Australians and royalty revenue for the Commonwealth Government given the project mostly sits in its waters.
It follows Labor's Resources Minister Gary Gray, who argued in recent weeks that the technology represented an opportunity for WA to develop new skills and expertise in the developing global trend.
The Treasury in Canberra estimated that the Petroleum Resource Rent Tax raked in about $1.5 billion in 2011-12, although it is forecast to rise as more LNG projects come online in future years.
But tax deductions would mean Woodside's Browse project would not be expected to pay PRRT for at least a decade after completion.
The Federal Government notionally supports land-based processing at James Price Point, which is opposed by green groups, but Environment Minister Tony Burke has yet to give environmental approval.
Given his approval of Toro Energy's uranium mine yesterday, Mr Burke's Browse decision is arguably now his most pressing issue.
Woodside has to report on the viability of the project by June under retention lease obligations. The project is expected to be uneconomic in its current form.
Woodside's partner Royal Dutch Shell has argued for FLNG to overcome WA's spiralling costs.
However, signalling he intends to fight the issue at every turn, Mr Barnett said some of the gas near Scott Reef belonged to WA and a land-based solution would deliver benefits including a $1.5 billion social package to traditional landowners.
"Browse is a massive oil and gas resource and it is in both WA's and Australia's interest that the gas is brought onshore to create long-term jobs - both in construction and operation - and stimulate broader development," he said.
The Premier has also argued a land-backed Browse hub would deliver sequential development benefits in other areas including the gas-rich Carnarvon basin.
