PERTH (miningweekly.com) – An independent study into the economic benefits of diversifying and growing downstream gas processing industries in Western Australia, has shown there is gas available in the state to support opportunities for investment in new downstream gas processing industries, including urea, methanol and ammonia.

Commissioned by the state government and undertaken by ACIL Allen, the independent study predicts that projects in downstream gas processing industries, operating over a 20-year lifespan, could deliver between A$3-billion and A$10-billion in gross state product, owing to their large scale and the realisation of new gas supplies in Western Australia.

Three variables for the success of downstream projects were identified in the study including location, capital expenditure and gas availability.

The study reports 19 findings and seven recommendations for consideration by the Western Australian government across gas availability, project-ready industrial areas, government assistance and government project facilitation capacity.

"This Western Australian Gas and Downstream Industries Opportunities Study confirms that gas will be an important part of the Western Australian economy well into the future, as the state continues to be one of the world's largest producers of liquefied natural gas (LNG),” said State Development, Jobs and Trade Minister Roger Cook.

"We are in a prime position to capitalise further on our local gas industry, and create more jobs for Western Australians, while enabling the transition to renewable energy.

"The LNG Jobs Taskforce is committed to supporting the industry, and this independent study proves that there are still significant opportunities for the Western Australian economy through gas."

Western Australia is already one of the world's largest producers of LNG, supplying 12% of global LNG exports and 57% of Australia's LNG exports in 2020.

Cook said that the government would consider the objectives and gas needs for new downstream processing projects through project facilitation activities, infrastructure support and the Western Australian Domestic Gas Policy approvals.