Major WA projects stimulate economic activity

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The Western Australian Business News' annual survey of major projects showed how much Western Australian projects have contributed to pulling Australia out of the global economic downturn.

According to the survey, there are currently around 22 major resources developments under way in Western Australia worth a combined A$42 billion.

While that is well below A$78 billion in projects under way at the same time last year, reflecting the impact of the global downturn, the number is also under-stated as it fails to account for the massive Gorgon Liquefied Natural Gas (LNG) project at Barrow Island, which has now won final approval.

Once the A$43 billion cost of Gorgon is factored in, the value of projects under way in Western Australia suddenly soars.

By way of background, in September the Australian Bureau of Statistics handed down its June quarter review, which revealed that Australia had growth of 0.6 per cent for first half of the year.

These better-than-expected growth numbers prompted Federal Treasurer Wayne Swan to declare that Australia was the fastest growing advanced economy in the world last year, and the only advanced economy not to have fallen into technical recession.

 

Gorgon

Artists impression of the Gorgon Plant

Australia's single biggest project investment ever, the Gorgon LNG Project, which has been 30 years in the making, has finally cleared all government and environmental hurdles.

The gas processing project, designed to produce 15 million tons of LNG annually, is scheduled to start production in 2014.

The Greater Gorgon Area, which will provide the gas feedstock for the project, is estimated to hold resources of 40 trillion cubic feet of gas, the equivalent of 6.7 billion barrels of oil.

In addition, another A$40 billion can be added to the tally for projects under development if Woodside Petroleum's proposed expansion of its Pluto LNG project and Chevron's rival Wheatstone LNG project are also factored in.