❓ A WA parliamentary question scrutinising the costs and legal basis for the State Government's insistence on locating the Browse LNG Precinct at James Price Point, questioning the government's authority and potential financial liabilities. The answer provides limited financial details and reiterates the government's position and objectives.
AnsweredQoN 5699Legislative Council
QuestionView source ↗
(1) What is the total cost to the State of the Browse LNG Precinct including, but not limited to —
(a) the site selection process;
(b) the costs of consultation with the Kimberley Land Council;
(c) the compulsory acquisition process;
(d) the environmental approvals process;
(e) the deployment of extra police;
(f) the (estimated cost of ) the construction of the Browse LNG Precinct Access Road;
(g) the budget of the Department of State Development allocated to this project; and
(h) any other costs?
(2) Regarding the Minister's recent public statement that he would use 'the Agreement Acts that cover both James Price Point and the North West Shelf project' to force the Browse LNG joint venture partners to locate their gas hub at James Price Point, is there currently an 'Agreement Act' that covers James Price Point, or did the Minister mean that he would at some time in the future introduce into Parliament a Bill for a State Agreement Act to cover James Price Point?
(3) If there is no Agreement Act currently in place for James Price Point, did the Minister issue a retraction stating that he was incorrect to imply that such an Act was already in place and could be used to force companies to locate at James Price Point?
(4) If no to (3), why not?
(5) If the Browse LNG joint venture partners complete their current assessment of the cost of developing an LNG facility at James Price Point and confirm that it will cost them as much as $10 billion more to build this facility compared to the costs of piping the gas to existing LNG plants in the Pilbara, will the Minister still force the companies to locate at James Price Point?
(6) If yes to (5), will the State Government be liable for, or in any way contribute to, the extra cost of building at James Price Point?
(7) If yes to (5), what powers does the Premier have to force the proponents to build at James Price Point?
(8) If no to (6), does the Premier have written assurances from the Browse LNG Joint Venture that they will not seek to recover the extra cost of locating at James Price Point?
(9) When the Minister recently stated publicly that the decision as to where Browse gas gets processed is 'not a private decision, it's a government decision', did he first advise the companies involved that this was his and his government's position, whether they agreed with it or not?
(10) Has the Minister formally written to the Browse LNG joint venture partners to advise them that no matter what they determine in relation to costs and preferred locations, they are going to have to build a gas hub at James Price Point regardless?
(11) If no to (10), will the Minister be doing so in the near future?
(12) In advising the companies that a gas hub is to be built at James Price Point regardless of their commercial decisions, has the Premier taken advice on the potential impacts of this on the company's share prices and investor confidence?
(a) the site selection process;
(b) the costs of consultation with the Kimberley Land Council;
(c) the compulsory acquisition process;
(d) the environmental approvals process;
(e) the deployment of extra police;
(f) the (estimated cost of ) the construction of the Browse LNG Precinct Access Road;
(g) the budget of the Department of State Development allocated to this project; and
(h) any other costs?
(2) Regarding the Minister's recent public statement that he would use 'the Agreement Acts that cover both James Price Point and the North West Shelf project' to force the Browse LNG joint venture partners to locate their gas hub at James Price Point, is there currently an 'Agreement Act' that covers James Price Point, or did the Minister mean that he would at some time in the future introduce into Parliament a Bill for a State Agreement Act to cover James Price Point?
(3) If there is no Agreement Act currently in place for James Price Point, did the Minister issue a retraction stating that he was incorrect to imply that such an Act was already in place and could be used to force companies to locate at James Price Point?
(4) If no to (3), why not?
(5) If the Browse LNG joint venture partners complete their current assessment of the cost of developing an LNG facility at James Price Point and confirm that it will cost them as much as $10 billion more to build this facility compared to the costs of piping the gas to existing LNG plants in the Pilbara, will the Minister still force the companies to locate at James Price Point?
(6) If yes to (5), will the State Government be liable for, or in any way contribute to, the extra cost of building at James Price Point?
(7) If yes to (5), what powers does the Premier have to force the proponents to build at James Price Point?
(8) If no to (6), does the Premier have written assurances from the Browse LNG Joint Venture that they will not seek to recover the extra cost of locating at James Price Point?
(9) When the Minister recently stated publicly that the decision as to where Browse gas gets processed is 'not a private decision, it's a government decision', did he first advise the companies involved that this was his and his government's position, whether they agreed with it or not?
(10) Has the Minister formally written to the Browse LNG joint venture partners to advise them that no matter what they determine in relation to costs and preferred locations, they are going to have to build a gas hub at James Price Point regardless?
(11) If no to (10), will the Minister be doing so in the near future?
(12) In advising the companies that a gas hub is to be built at James Price Point regardless of their commercial decisions, has the Premier taken advice on the potential impacts of this on the company's share prices and investor confidence?
AnswerView source ↗
Answered
14 August 2012
Responded by
Leader of the House representing the Minister for State Development
Response time
63 days
(1)(a-h) The total cost to the Department of State Development (established in
January 2009) for the Browse LNG Precinct is $24,529,071 (as at May 2012). This figure does not include approximately $16 million reimbursed by Woodside Energy Ltd.
(2-12) The State Government's preferred site for processing Browse Basin Gas is near James Price Point, approximately 60 kilometres north of Broome. The site was selected from a possible 43 sites based on an assessment of technical, engineering, environmental, cultural and socio-economic grounds.
The State Government's key objectives for the establishing the site at this location were to:
? process Browse Basin gas in the Kimberley;
? provide economic benefit for the Kimberley region;
? provide significant benefit to Traditional Owners;
? ensure that development is environmentally, socially and culturally sustainable; and
? to avoid multiple LNG sites on the Kimberley coast.
The Browse Joint Venturers (Joint Venturers) are currently assessing the feasibility of establishing an LNG Processing Facility at the preferred site and a Final Investment Decision is expected in the first half of 2013. The decision will be based on commercial considerations.
A decision to process Browse Basin Gas at the government's preferred site or any alternative site within the State cannot be made by the Joint Venturers alone. They are required to negotiate project terms and conditions with the State and enter into a State Agreement.
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January 2009) for the Browse LNG Precinct is $24,529,071 (as at May 2012). This figure does not include approximately $16 million reimbursed by Woodside Energy Ltd.
(2-12) The State Government's preferred site for processing Browse Basin Gas is near James Price Point, approximately 60 kilometres north of Broome. The site was selected from a possible 43 sites based on an assessment of technical, engineering, environmental, cultural and socio-economic grounds.
The State Government's key objectives for the establishing the site at this location were to:
? process Browse Basin gas in the Kimberley;
? provide economic benefit for the Kimberley region;
? provide significant benefit to Traditional Owners;
? ensure that development is environmentally, socially and culturally sustainable; and
? to avoid multiple LNG sites on the Kimberley coast.
The Browse Joint Venturers (Joint Venturers) are currently assessing the feasibility of establishing an LNG Processing Facility at the preferred site and a Final Investment Decision is expected in the first half of 2013. The decision will be based on commercial considerations.
A decision to process Browse Basin Gas at the government's preferred site or any alternative site within the State cannot be made by the Joint Venturers alone. They are required to negotiate project terms and conditions with the State and enter into a State Agreement.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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