Mr POOLE - 2001-02-27
There have been many comments in the media lately about the development of oil and gas in the Northern Territory. What steps are being taken by the Territory government to assist industry to bring the Timor Sea gas onshore into Darwin?
ANSWER
Mr Speaker, I appreciate the opportunity to report on just one of those activities. It will be interesting to see what the Labor Party’s position is on that. The Leader of the Opposition goes holidaying in Scotland yet doesn’t even seek a briefing on the gas projects and what initiatives the government has underway before she leaves and has the gall to come in here and move a motion that we should pre-plan overseas trips with far more focus. And you don’t even get a briefing to find out what is going on.
Ms Martin: What did you do in Athens, Denis?
Mr SPEAKER: Order, order!
Mr BURKE: The Leader of the Opposition said to me ‘What did you do in Athens?’ I will tell you what I did right through to the Dodecanese, every day. You table in this Assembly what you did on your trip. Fair deal?
Ms Martin: What did you do in Athens?
Mr BURKE: ‘Oh, what did you do in Athens,’ she says. What did you do in the time you were away? I will table my itinerary by the day, every day.
With regards to the gas projects, as I have said on many occasions, we are vitally aware of the importance of this issue and its impact on the Territory and, indeed, Australia’s economy. The projects in the Timor Sea are world class scale and my government is working with the producers, a range of potential customers for the gas. The Commonwealth government is involved, and also the United Nations and East Timorese officials, to assist in facilitating these developments.
Over the next five to ten years, the potential capital investment involved in these exciting projects and associated developments is around $13.5bn, ten times - it is worth noting for Territorians - the investment in the railway.
Some of the important developments include: Phillips Petroleum has demonstrated its faith in the Timor Sea potential committing $2.7bn to the first stage of the Bayu Undan liquid stripping plant and as recently as Friday of last week, announced an increase in its interest in the Greater Sunrise field to 30%. This is in addition to its majority holding in the Bayu Undan field and further cements the cooperative arrangements between Phillips and Woodside to bring gas to Darwin. It also positions Phillips as the marketing manager for LNG across the aligned gas field. A very important decision to involve and allow Phillips to take the lead in LNG sales in the Timor Sea, something that has not been the case in the past with North West Shelf.
Phillips and Multiplex should commit up to, I am told, $US800m, 500 km pipeline to Darwin from the Bayu Undan project at the end of July this year, and this will be a major milestone in the development of the Territory’s industrial base. Discussions are continuing between Phillips, Shell and Woodside for a cooperative development of their respective gas fields and on issues such as pipelines and their oversizing. I am hopeful that these discussions lead to cooperation occurring, as it is in the best interests of the Territory, Australia and the shareholders of these companies.
Woodside and Shell have a letter of intent to supply gas to a proposed Methanex syngas and methanol plant in 2005, and Methanex should commit to detailed engineering and regulatory approvals for its $1.5bn plant in the next few months. At the same time, I have sought to ensure that Timor Sea gas to Darwin will not be jeopardised by any future takeover of Woodside by Shell, and can I say that certainly the agreements that happened on Friday go a long way to allay any concerns on that score.
Discussions are ongoing between the Commonwealth government, United Nations transitional administration in East Timor, UNTAET, which includes senior East Timorese officials, and we are hopeful that there is an early resolution to these issues which is clearly in the best interests of the people of East Timor and the people of Australia, and I raised that particular subject with the Prime Minister when he was here. The content of these negotiations is confidential but it is of such importance to the Territory and to Australia that certainly action at the federal level, hopefully energised by the Prime Minister, needs to occur at this point.
A group led by the Territory Construction Association visited Methanex in New Zealand last week with a view to seeing how they can help this important project for Darwin and provide job opportunities for Territorians and I look forward to hearing from TCA with regards to their particular visit.
The government is moving to establish industrial estates for gas manufacturing to assist customers who wish to manufacture the gas, interproducts such as methanol, liquefied natural gas and fertilisers. The prime area under consideration for such industries is Glyde Point and members will recall that Phillips Petroleum has already received approvals for its $1.5bn LNG plant to be located at Wickham Point.
The bringing of gas to shore will have a major impact upon the industrial base of the Territory and enable the establishment of world scale plants. The spin-off effect of these plants and the servicing of the off-shore facilities will further enhance the Territory’s industrial capability and provide numerous opportunities for employment and business development for Territorians.
A recent economic study by the Centre for International Economics found that the proposed Sunrise Gas project, Methanex project and related developments would create up to 3400 permanent jobs Australia wide and add $760m per year to Australia’s export revenue. The study also concluded that there will be at least 1000 direct and indirect permanent jobs for Territorians. The benefits of such a huge employment boost to the Territory certainly will not be lost on Territorians.
To ensure a whole-of-government and coordinated approach to the development of Timor Sea gas, I established the Timor Sea Gas Task Force late last year, chaired by the Secretary of my department, with members including the CEOs of the Department of Mines and Energy, Treasury and the Power and Water Authority. This group complements the detailed work that has been under way for some time in the Office of Resource Development, the Department of Transport and Works and the Department of Lands, Planning and Environment.
ANSWER
Mr Speaker, I appreciate the opportunity to report on just one of those activities. It will be interesting to see what the Labor Party’s position is on that. The Leader of the Opposition goes holidaying in Scotland yet doesn’t even seek a briefing on the gas projects and what initiatives the government has underway before she leaves and has the gall to come in here and move a motion that we should pre-plan overseas trips with far more focus. And you don’t even get a briefing to find out what is going on.
Ms Martin: What did you do in Athens, Denis?
Mr SPEAKER: Order, order!
Mr BURKE: The Leader of the Opposition said to me ‘What did you do in Athens?’ I will tell you what I did right through to the Dodecanese, every day. You table in this Assembly what you did on your trip. Fair deal?
Ms Martin: What did you do in Athens?
Mr BURKE: ‘Oh, what did you do in Athens,’ she says. What did you do in the time you were away? I will table my itinerary by the day, every day.
With regards to the gas projects, as I have said on many occasions, we are vitally aware of the importance of this issue and its impact on the Territory and, indeed, Australia’s economy. The projects in the Timor Sea are world class scale and my government is working with the producers, a range of potential customers for the gas. The Commonwealth government is involved, and also the United Nations and East Timorese officials, to assist in facilitating these developments.
Over the next five to ten years, the potential capital investment involved in these exciting projects and associated developments is around $13.5bn, ten times - it is worth noting for Territorians - the investment in the railway.
Some of the important developments include: Phillips Petroleum has demonstrated its faith in the Timor Sea potential committing $2.7bn to the first stage of the Bayu Undan liquid stripping plant and as recently as Friday of last week, announced an increase in its interest in the Greater Sunrise field to 30%. This is in addition to its majority holding in the Bayu Undan field and further cements the cooperative arrangements between Phillips and Woodside to bring gas to Darwin. It also positions Phillips as the marketing manager for LNG across the aligned gas field. A very important decision to involve and allow Phillips to take the lead in LNG sales in the Timor Sea, something that has not been the case in the past with North West Shelf.
Phillips and Multiplex should commit up to, I am told, $US800m, 500 km pipeline to Darwin from the Bayu Undan project at the end of July this year, and this will be a major milestone in the development of the Territory’s industrial base. Discussions are continuing between Phillips, Shell and Woodside for a cooperative development of their respective gas fields and on issues such as pipelines and their oversizing. I am hopeful that these discussions lead to cooperation occurring, as it is in the best interests of the Territory, Australia and the shareholders of these companies.
Woodside and Shell have a letter of intent to supply gas to a proposed Methanex syngas and methanol plant in 2005, and Methanex should commit to detailed engineering and regulatory approvals for its $1.5bn plant in the next few months. At the same time, I have sought to ensure that Timor Sea gas to Darwin will not be jeopardised by any future takeover of Woodside by Shell, and can I say that certainly the agreements that happened on Friday go a long way to allay any concerns on that score.
Discussions are ongoing between the Commonwealth government, United Nations transitional administration in East Timor, UNTAET, which includes senior East Timorese officials, and we are hopeful that there is an early resolution to these issues which is clearly in the best interests of the people of East Timor and the people of Australia, and I raised that particular subject with the Prime Minister when he was here. The content of these negotiations is confidential but it is of such importance to the Territory and to Australia that certainly action at the federal level, hopefully energised by the Prime Minister, needs to occur at this point.
A group led by the Territory Construction Association visited Methanex in New Zealand last week with a view to seeing how they can help this important project for Darwin and provide job opportunities for Territorians and I look forward to hearing from TCA with regards to their particular visit.
The government is moving to establish industrial estates for gas manufacturing to assist customers who wish to manufacture the gas, interproducts such as methanol, liquefied natural gas and fertilisers. The prime area under consideration for such industries is Glyde Point and members will recall that Phillips Petroleum has already received approvals for its $1.5bn LNG plant to be located at Wickham Point.
The bringing of gas to shore will have a major impact upon the industrial base of the Territory and enable the establishment of world scale plants. The spin-off effect of these plants and the servicing of the off-shore facilities will further enhance the Territory’s industrial capability and provide numerous opportunities for employment and business development for Territorians.
A recent economic study by the Centre for International Economics found that the proposed Sunrise Gas project, Methanex project and related developments would create up to 3400 permanent jobs Australia wide and add $760m per year to Australia’s export revenue. The study also concluded that there will be at least 1000 direct and indirect permanent jobs for Territorians. The benefits of such a huge employment boost to the Territory certainly will not be lost on Territorians.
To ensure a whole-of-government and coordinated approach to the development of Timor Sea gas, I established the Timor Sea Gas Task Force late last year, chaired by the Secretary of my department, with members including the CEOs of the Department of Mines and Energy, Treasury and the Power and Water Authority. This group complements the detailed work that has been under way for some time in the Office of Resource Development, the Department of Transport and Works and the Department of Lands, Planning and Environment.
Last updated: 09 Aug 2016