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Researched by Industrial Info Resources (Sugar Land, Texas)--The Australian Oil & Gas Industry, which is already dealing with soaring cost blowouts at new facilities that are still under construction and falling commodity prices, has been dealt another blow that could further hurt the chances of more large-scale investments. Western Australian Premier Colin Barnett has raised concerns that the $32 billion (AU$30 Billion) Kimberly Gas Hub could be the next casualty of pressure from environmental groups before the next federal election.
Acting Queensland Premier Jeff Seeney has made similar comments. He said that the extra environmental requirements placed on the Rio Tinto project, which is south of Embley in North Queensland, were politically motivated. The requirements came after there were complaints made by environmental groups over shipping routes in the Great Barrier Reef. "It's a good example of where credible evidence-based, science-based, process has been overtaken for political games," he said.
The federal government has defended its approvals process after both the Western Australian and Queensland state governments claimed big projects in the Mining and Oil & Gas industries were being held up by the Commonwealth. A spokesperson for Federal Environment Minister Tony Burke, has said that the federal government was committed to streamlining environmental assessment and approval processes.
"This commitment includes introducing legislative reforms in 2013 and also working with states, through strategic assessments and by improving existing single-assessments arrangements," Burke said.
Barnett was already infuriated over Burke's decision, which was made late in 2012, to delay final approval for the Toro Energy project. This project would have been Western Australian's first uranium mine. Barnett said the approvals process should be apolitical. "There's been some indication in the Kimberly that despite a process that was agreed to by all groups, including environmental groups, that the federal government in Canberra now appears to be back-tracking," he said.
"I just don't think you play politics with environmental approvals or any type of approval. There are set criteria; most environmental issues come down to a matter of science, and the science should prevail," Barnett said.
Woodside Petroleum's Browse gas project, which is the cornerstone of the proposed Kimberly Gas Hub, has divided the local community. It also is the subject of legal challenges from both environmental and indigenous groups because of plans to build the plant at James Price Point, which is north of Broome in Western Australia. Bourke is yet to sign off on the approvals, and Woodside and its joint venture partners are yet to make a final investment decision.
The Premier, however, has compared the much-debated and controversial Kimberly Gas Hub plan to some of Australia's most successful large-scale projects that were widely criticized at the time.
"The reality is that any big project in Western Australia has immense complexities and takes years to develop, and if you go back in history, you can go right back to C.Y. O'Connor's water pipeline--it was debated, ridiculed," Barnett said. "The development of the Pilbara iron ore mines in the 60's--same thing. People said it would never happen because it was too hard and too remote."
Barnett has again stated that the state government has the authority to ensure the gas was piped ashore at James Price Point instead of being taken to a floating liquefied natural gas plant, where Aboriginal landowners and other Australians would receive no benefits.
The Premier added: "We would be foolish as a country or a state if we allowed all of our gas and all of the jobs and all of the economic opportunities for business to simply go offshore. No other country would do that."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Acting Queensland Premier Jeff Seeney has made similar comments. He said that the extra environmental requirements placed on the Rio Tinto project, which is south of Embley in North Queensland, were politically motivated. The requirements came after there were complaints made by environmental groups over shipping routes in the Great Barrier Reef. "It's a good example of where credible evidence-based, science-based, process has been overtaken for political games," he said.
The federal government has defended its approvals process after both the Western Australian and Queensland state governments claimed big projects in the Mining and Oil & Gas industries were being held up by the Commonwealth. A spokesperson for Federal Environment Minister Tony Burke, has said that the federal government was committed to streamlining environmental assessment and approval processes.
"This commitment includes introducing legislative reforms in 2013 and also working with states, through strategic assessments and by improving existing single-assessments arrangements," Burke said.
Barnett was already infuriated over Burke's decision, which was made late in 2012, to delay final approval for the Toro Energy project. This project would have been Western Australian's first uranium mine. Barnett said the approvals process should be apolitical. "There's been some indication in the Kimberly that despite a process that was agreed to by all groups, including environmental groups, that the federal government in Canberra now appears to be back-tracking," he said.
"I just don't think you play politics with environmental approvals or any type of approval. There are set criteria; most environmental issues come down to a matter of science, and the science should prevail," Barnett said.
Woodside Petroleum's Browse gas project, which is the cornerstone of the proposed Kimberly Gas Hub, has divided the local community. It also is the subject of legal challenges from both environmental and indigenous groups because of plans to build the plant at James Price Point, which is north of Broome in Western Australia. Bourke is yet to sign off on the approvals, and Woodside and its joint venture partners are yet to make a final investment decision.
The Premier, however, has compared the much-debated and controversial Kimberly Gas Hub plan to some of Australia's most successful large-scale projects that were widely criticized at the time.
"The reality is that any big project in Western Australia has immense complexities and takes years to develop, and if you go back in history, you can go right back to C.Y. O'Connor's water pipeline--it was debated, ridiculed," Barnett said. "The development of the Pilbara iron ore mines in the 60's--same thing. People said it would never happen because it was too hard and too remote."
Barnett has again stated that the state government has the authority to ensure the gas was piped ashore at James Price Point instead of being taken to a floating liquefied natural gas plant, where Aboriginal landowners and other Australians would receive no benefits.
The Premier added: "We would be foolish as a country or a state if we allowed all of our gas and all of the jobs and all of the economic opportunities for business to simply go offshore. No other country would do that."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
