❓ Opposition questions the Premier regarding the inclusion of domestic gas commitments in Woodside's Browse project at James Price Point, specifically regarding infrastructure and economic modelling. The Premier confirms a 15% domestic gas reservation but acknowledges challenges in delivery due to lack of local demand and pipeline infrastructure.
AnsweredQoN 333Legislative Assembly
QuestionView source ↗
JAMES PRICE POINT — DOMESTIC GAS
RESERVATION
333. Mr M. McGOWAN to the Premier:
I refer to the Browse natural gas project proposed for James
Price Point and the Premier's comments during the estimates hearings on
29 May 2012. He stated —
Yes,
there will be a requirement on Browse for domestic gas. It would be based
around the 15 per cent principle. We have to also think where the immediate
demand for natural gas in the Kimberley is; it is not there. It would require a
pipeline connection to Port Hedland to integrate into the distribution.
In light of this, I ask —
(1) Is it not the
case that the project operator, Woodside, is not including domestic gas
commitments and infrastructure in its front-end engineering and design phase?
(2) If Woodside
has not taken into account a domestic gas component in its economic and
financial modelling, why has the Premier not insisted that it does?
RESERVATION
333. Mr M. McGOWAN to the Premier:
I refer to the Browse natural gas project proposed for James
Price Point and the Premier's comments during the estimates hearings on
29 May 2012. He stated —
Yes,
there will be a requirement on Browse for domestic gas. It would be based
around the 15 per cent principle. We have to also think where the immediate
demand for natural gas in the Kimberley is; it is not there. It would require a
pipeline connection to Port Hedland to integrate into the distribution.
In light of this, I ask —
(1) Is it not the
case that the project operator, Woodside, is not including domestic gas
commitments and infrastructure in its front-end engineering and design phase?
(2) If Woodside
has not taken into account a domestic gas component in its economic and
financial modelling, why has the Premier not insisted that it does?
AnswerView source ↗
(1)–(2)
It has been well understood in the negotiations and discussions between the
state government and Woodside and its joint venture partners that there will be
a domestic gas phase to the Browse project. The obvious point is that there is
no natural target in the immediate vicinity in terms of the usage of that gas;
I guess some relatively small consumption would be through the Broome power
station, but that would be a very small volume of gas. To have the domestic
obligation is one thing; the second component is then to have a means of
bringing that to the domestic market in a substantial way. That would require a
domestic gas processing plant and it would require a pipeline connection from
James Price Point, through Broome or the vicinity of Broome, and into Port
Hedland, to connect to the major grid system. That is not an obligation that
has been placed on the Browse joint venture; the obligation on the Browse joint
venture is the 15 per cent reservation of gas for the domestic market.
It has been well understood in the negotiations and discussions between the
state government and Woodside and its joint venture partners that there will be
a domestic gas phase to the Browse project. The obvious point is that there is
no natural target in the immediate vicinity in terms of the usage of that gas;
I guess some relatively small consumption would be through the Broome power
station, but that would be a very small volume of gas. To have the domestic
obligation is one thing; the second component is then to have a means of
bringing that to the domestic market in a substantial way. That would require a
domestic gas processing plant and it would require a pipeline connection from
James Price Point, through Broome or the vicinity of Broome, and into Port
Hedland, to connect to the major grid system. That is not an obligation that
has been placed on the Browse joint venture; the obligation on the Browse joint
venture is the 15 per cent reservation of gas for the domestic market.
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