WA’s LNG future looking bright
$40 million commitment from the Federal Government towards the Future Energy
Exports Cooperative Research Centre (CRC) will further boost the development of
technology and innovation in Western Australia’s resources sector.
The Chamber of Mineral and Energy of Western Australia’s (CME) Chief Executive Paul Everingham said it was positive to see funding now committed to the project, given Infrastructure Australia had earmarked it as a priority initiative.
“Australia is one of the world’s largest exporters of liquefied natural gas (LNG), with an estimated value of over $50 billion in 2018–19, however the high cost of producing LNG locally makes us less competitive than other countries,” he said.
“The 2019 Australian Infrastructure Audit found that Australia could provide global leadership and innovation in the energy sector by leveraging its natural resources and high-quality research institutions.
The CRC will be perfectly positioned to develop and test new technologies with the potential to improve operational performance, increase process reliability and reduce production costs, leading to better environmental and economic outcomes.”
Everingham said an important part of the funding package would be the
allocation of $16 million to the planned world-first microscale LNG plant that
will form part of the LNG Futures Facility in Kwinana.
“Our members including Chevron, Woodside, Shell, Santos and Inpex have been heavily involved in the development of this facility through the LNG Jobs Taskforce, which aims to create local jobs in WA’s LNG industry,” he said.
“The Kwinana facility has the potential to create up to 1,400 jobs.”
Mr Everingham said a key priority for CME and its members was to reduce the cost of doing business and remove unnecessary administrative burden to ensure WA is well-positioned to take advantage of the next wave of investment expected to flow into the State.