Mr McADAM - 2003-06-17
Can you please advise the House of progress with the gas supply to the proposed Alcan Alumina expansion and what this means for jobs and jobs growth in the Territory?
ANSWER
Madam Speaker, I thank the member for Barkly for that question because, again, not only have we been able to mark the $3bn investment, the job creation, the business opportunities from the decision on Bayu-Undan, the pipeline and LNG plant, but on 6 June, there was an announcement from Woodside and Alcan for the signing of a heads of agreement to supply gas from the Blacktip Field in the Bonaparte Gulf to the proposed Alcan Alumina expansion at Gove. It was wonderful to have a press conference with ENI, Alcan and Woodside, and down the back, a very cheering Treasurer and local member for Nhulunbuy, adding a certain kind of life and enthusiasm to the press conference.
It is a very significant step and it is making the proposed $1.5bn Alcan Gove Alumina expansion a reality. It is bringing more gas onshore for economic activity and jobs in the Territory. The project involves a pipeline from the Blacktip Field in the Bonaparte Gulf to Wadeye, and a further 1000 km of pipeline to Mataranka and then on to Gove. The pipeline project will employ at least 500 workers in the construction phase, and the proposed Alcan expansion will employ 1200 workers during its construction phase. I am very pleased to be working with Woodside and Alcan on this very exciting project.
To assist the project proponents and government working together, we established a dedicated task force last year to assist with the proposed Alcan expansion. With that now linking into the Blacktip gas supply, the task force will now work with Alcan and Woodside on the issues involved in that development. They are complex issues, have no doubt about it. There are environmental and land access issues. I am confident that all players can work very cooperatively together - that is, Woodside, Alcan, ENI and the Northern Land Council – to work through the complex land access and environmental issues to see this project get a final tick from Alcan in the next 12 months. The feasibility study is for 12 months and that is expected to be finalised in mid-2004. Subject to the finalisation of that feasibility study and environmental approvals, the work on the Alcan expansion could start in 2005, with a completion date of 2007.
The total cost of this combined project of the gas pipeline and the alumina expansion is $2.5bn in capital expenditure - $500m on the offshore development; $500m on the 1000 km pipeline; and on top of that, the $1.5bn expansion at Alcan.
It again says that our arguments for gas onshore in the Territory have been credible. They are now bearing fruit. This means real opportunities for industrial expansion of the Territory both now and in the future, and jobs for Territorians. It means jobs, it means business opportunities and, importantly, with these particular projects, the Alcan expansion and the pipeline, it means regional jobs for the Territory.
ANSWER
Madam Speaker, I thank the member for Barkly for that question because, again, not only have we been able to mark the $3bn investment, the job creation, the business opportunities from the decision on Bayu-Undan, the pipeline and LNG plant, but on 6 June, there was an announcement from Woodside and Alcan for the signing of a heads of agreement to supply gas from the Blacktip Field in the Bonaparte Gulf to the proposed Alcan Alumina expansion at Gove. It was wonderful to have a press conference with ENI, Alcan and Woodside, and down the back, a very cheering Treasurer and local member for Nhulunbuy, adding a certain kind of life and enthusiasm to the press conference.
It is a very significant step and it is making the proposed $1.5bn Alcan Gove Alumina expansion a reality. It is bringing more gas onshore for economic activity and jobs in the Territory. The project involves a pipeline from the Blacktip Field in the Bonaparte Gulf to Wadeye, and a further 1000 km of pipeline to Mataranka and then on to Gove. The pipeline project will employ at least 500 workers in the construction phase, and the proposed Alcan expansion will employ 1200 workers during its construction phase. I am very pleased to be working with Woodside and Alcan on this very exciting project.
To assist the project proponents and government working together, we established a dedicated task force last year to assist with the proposed Alcan expansion. With that now linking into the Blacktip gas supply, the task force will now work with Alcan and Woodside on the issues involved in that development. They are complex issues, have no doubt about it. There are environmental and land access issues. I am confident that all players can work very cooperatively together - that is, Woodside, Alcan, ENI and the Northern Land Council – to work through the complex land access and environmental issues to see this project get a final tick from Alcan in the next 12 months. The feasibility study is for 12 months and that is expected to be finalised in mid-2004. Subject to the finalisation of that feasibility study and environmental approvals, the work on the Alcan expansion could start in 2005, with a completion date of 2007.
The total cost of this combined project of the gas pipeline and the alumina expansion is $2.5bn in capital expenditure - $500m on the offshore development; $500m on the 1000 km pipeline; and on top of that, the $1.5bn expansion at Alcan.
It again says that our arguments for gas onshore in the Territory have been credible. They are now bearing fruit. This means real opportunities for industrial expansion of the Territory both now and in the future, and jobs for Territorians. It means jobs, it means business opportunities and, importantly, with these particular projects, the Alcan expansion and the pipeline, it means regional jobs for the Territory.
Last updated: 09 Aug 2016