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Transcripts from the Prime Ministers of Australia

Transcript 16819

Australian Government welcomes Gorgon joint venture's history-making investment decision. Joint Media Release with the Minister for Resources and Energy, Martin Ferguson AM MP

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Rudd, Kevin

Period of Service: 03/12/2007 to 24/06/2010

More information about Rudd, Kevin on The National Archive website.

Release Date: 14/09/2009

Release Type: Media Release

Transcript ID: 16819

The Australian Government welcomes the jobs, export earnings, and global greenhouse gas abatement which will flow from today's Final Investment Decision of the Gorgon Joint Venture Partners.

The Minister for Resources and Energy, Martin Ferguson AM MP, today represented the Australian Government at a ceremony in Perth to mark the decision to proceed with the project.

The Gorgon Liquefied Natural Gas (LNG) project off Australia's north-west coast is being undertaken by a joint venture partnership consisting of Chevron (50% and operator), ExxonMobil (25%) and Shell (25%).

The Gorgon investment will be Australia's largest-ever resources development and is expected to generate $300 billion in Australian export earnings.

The project is expected to support 10,000 direct and indirect jobs in the peak construction phase and 3,500 direct and indirect jobs throughout the life of the project. $33 billion in goods and services is expected to be purchased in Australia for the project and Government revenue of $40 billion is anticipated.

Importantly, the Gorgon project will also be the world's biggest CO2 geological storage project. The Australian Government last month announced its decision to jointly accept - with the Western Australian Government - long-term liability arising from the storage, clearing the way for today's Final Investment Decision.

The environmental benefits of the Gorgon project will however be more far-reaching. Every ton of CO2 generated producing LNG in Australia reduces four tons of CO2 in Japan, and nine tons of CO2 in China, when used in place of coal for electricity generation.

Gorgon will help to stimulate Australia's economic growth and provide energy security for many decades. According to ACIL Tasman, over the first 30 years the project is expected to boost Australia's GDP by A$65 billion (NPV).

Transcript 16819