Department of the Legislative Assembly, Northern Territory Government

Mr KIELY - 2003-06-17

Without looking at my shirt or my laptop, what does the ConocoPhillips decision to proceed with the Bayu-Undan gas development mean for the Territory?

ANSWER

A very important question from the member for Sanderson, Madam Speaker. May I hold it up?

Madam SPEAKER: You may.

Ms MARTIN: Sunday’s announcement from the joint venturers in Bayu-Undan was a most significant announcement for the Territory and I cannot think of a more significant announcement. To have the single, most significant, private investment in the Territory’s economy, to see what I believe will be a step change in the Territory economy, was an historic occasion.

I congratulate the Bayu-Undan joint venturers - ConocoPhillips, the majority shareholders; Santos; Impex; and ENI - on this very significant occasion. It has taken significant work from the previous government, from this government and many other players to have this achieved in eight years.

After all the anticipation - and we have seen contingent contracts let in the Territory - the announcement means that the construction of the pipeline from Bayu-Undan will go ahead. It is a 500 km pipeline from Bayu-Undan to Wickham Point where the $1.6bn LNG plant will be built. As I said, it is the single, largest private investment in the Territory in our history.

Importantly and crucially to this government this means jobs. Bechtel, which is constructing the plant, will have over a period of three years up to 1300 jobs at any time using a mix of local and interstate workers. Once the plant is built - it has a 17 year operational phase at this stage - a further 120 permanent jobs will be based in Darwin at the LNG plant. Bechtel has set up an office, a hiring hall, in Palmerston and is already registering names of people who would like to work at their site.

There are many people who worked on this project who deserve our thanks, including the joint venturers; members of TeamNT, who have been crucial over the last couple of years in progressing this project, in arguing the case at a national and local level; and my Office of Territory Development, which has also been critical in making this project a reality.

Thanks must go to the federal government, and the Prime Minister. I would like especially to thank the Treasurer, Peter Costello and the Foreign Minister, Alexander Downer, for their commitment to this project.

Importantly, the East Timorese government and the East Timorese community deserve our thanks for their commitment to getting this project working. They committed to this, and there was a great detail of legislation that had to be worked through. That legislation was finally signed off by the President last Friday. A critical component of this project working were the East Timorese, and our thanks to them.

This first gas from the Timor Sea to Darwin opens up the whole of the Timor Sea gas province. It puts Darwin on the map as Australia’s second international gas hub. This news was not lost on the SEAAOC delegates yesterday, and there was a buzz for anyone who was there. Twelve months ago there was a level of frustration about what was happening to develop the Timor Sea. There were tense arguments about floating facilities at the conference. This time there was an air of celebration that a major project, rather than a concept, rather than just talking about it, was actually happening. There was a real feeling of excitement.

As government, we have been working closely with the Bayu-Undan operators. We have made a $20m investment in the road and associated infrastructure such as the power and water supply, and that will be completed in time to begin construction of the plant. We made that commitment before the plant was finally signed off. We always believed it would happen and made that investment, particularly in the road, with a great amount of confidence. The LNG plant will be ConocoPhillips’ most up-to-date, most environmentally friendly plant, and it will have to meet the most strict environmental guidelines.

This is a great development. Sunday and the days subsequent really have been a time of celebration for the Territory, not just for the politicians; it is for all Territorians. It means that we have seen a significant change in the future economic development of the Territory, and that is something, because it means jobs for Territorians, it means greater opportunities for our businesses. It is something we should all celebrate.
Last updated: 09 Aug 2016