Photo by: Bloomberg
PERTH (miningweekly.com) – The A$40-billion Burrup Hub development proposed by oil and gas major Woodside could boost Australia’s gross domestic product (GDP) by some A$414-billion between 2019 and 2063, new data from economic consultants ACIL Allen has shown.
Woodside COO Meg O’Neill noted the project could deliver total direct tax and royalty payments of up to A$82-billion, with the Burrup Hub likely to support the creation of an estimated 4 000 full-time equivalent jobs a year nationally over a 40-year time frame.
The Burrup Hub involves development of some 20-trillion to 25-trillion cubic feet of gross dry gas resources from the Browse, Pluto and Scarborough gasfields, based on current reserves, processed through proven existing liquefied natural gas (LNG) facilities, such as the Pluto LNG and the North West Shelf projects.
“We are making progress as well in terms of our regulatory approvals. Last month, the Environmental Protection Authority recommended environmental approval of the interconnector. We are progressing a range of other applications for environmental approvals relating to the offshore and onshore components.
“This process involves extensive stakeholder consultation to ensure that communities understand what is planned and that we understand and respond to their questions,” O’Neill said on Wednesday.
“The pieces of the jigsaw are coming together as we head towards targeted final investment decisions next year.”
The Western Australian Chamber of Minerals and Energy’s (CME’s) CEO Paul Everingham on Wednesday said that Western Australia would receive the majority of the significant spend through employment, taxation and royalties and exports, providing a windfall for the state’s finances.
“This is great news for West Australian jobseekers, as the two projects will provide an average of 950 jobs per year, with a peak construction workforce of more than 4 600 jobs in 2023,” he said.
“In addition, more than A$82-billion in taxation and royalties are estimated to be directly paid from the Burrup Hub, and another A$44-billion indirectly, significantly boosting the state’s economy and, in turn, helping to fund vital infrastructure such as hospitals and schools.”
Everingham said residents and local businesses in the Pilbara and Kimberley region would particularly benefit from the local jobs and procurement opportunities that would be created as a result of the projects, worth about A$1.3-billion to the two regions.
“More than 1 900 jobs will be located in Karratha and Broome over the life of the project. Businesses in Karratha will, on average, benefit from more than A$86-million per year of direct localised spending required to operate the Burrup Hub, with A$15-million of spend estimated annually for Broome logistics support activities.
“There is little doubt that the resources sector is doing the heavy lifting in securing the economic future of the nation, bringing immense financial, social and community benefits to the lives of all Australians.”