❓ Opposition questions Premier Barnett on the failed Browse LNG project at James Price Point, focusing on the decision to restrict site options. Barnett defends his actions, emphasizing job creation and economic benefits for WA, while admitting failure to achieve desired timeframe but not giving up.
AnsweredQoN 654Legislative Assembly
QuestionView source ↗
BROWSE LNG
PROJECT — JAMES PRICE POINT SITE
654. Mr M. McGOWAN to the
Premier:
I refer to the statements of Chevron Australia managing
director Roy Krzywosinski in which he blamed the loss of onshore processing of
Browse gas on the insistence that the joint venture partners could build a
processing plant only at James Price Point.
(1) Why did
the Premier refuse to allow the joint venture partners to investigate the
financial viability of other options, including the piping of the gas to the
Burrup Peninsula as they wanted?
(2) Was the
Premier advised before insisting on one site that the joint venture partners
were keen on investigating other onshore sites; and, if so, will the Premier
table that advice?
(3) Does the
Premier now accept that he lost this massive project due to his
interventionism?
PROJECT — JAMES PRICE POINT SITE
654. Mr M. McGOWAN to the
Premier:
I refer to the statements of Chevron Australia managing
director Roy Krzywosinski in which he blamed the loss of onshore processing of
Browse gas on the insistence that the joint venture partners could build a
processing plant only at James Price Point.
(1) Why did
the Premier refuse to allow the joint venture partners to investigate the
financial viability of other options, including the piping of the gas to the
Burrup Peninsula as they wanted?
(2) Was the
Premier advised before insisting on one site that the joint venture partners
were keen on investigating other onshore sites; and, if so, will the Premier
table that advice?
(3) Does the
Premier now accept that he lost this massive project due to his
interventionism?
AnswerView source ↗
(1)–(3) I certainly do not because I have not given
up for one moment.
Several members interjected.
Mr C.J. BARNETT :
Members opposite laugh but —
Several members interjected.
Mr M. McGowan : You
did in estimates; you said, ''I failed''.
Mr C.J. BARNETT :
Yes, I failed to achieve it in the time frame I wanted, but I will not give up.
Do not gaze up to the gallery; they are not watching you.
Several members interjected.
The
SPEAKER : Leader of the Opposition, I formally call you to order for the
first time today. Member for Albany, I formally call you to order for the first
time today. Can you allow the Premier to answer the question at least?
Mr C.J. BARNETT :
The original version of the Browse joint venture operated under conditions set
by the commonwealth and the state that required the gas to come onshore in the
Kimberley at a selected site. Those were the conditions. Some of the partners—Chevron,
certainly—talked about bringing gas into the North West Shelf project.
As I have asked in this house before, what would that mean? That would mean
that development of the Browse gas project would be put back quite some time,
because the North West Shelf project has sufficient reserves to operate until
the late 2020s on proven reserves, and we would expect other reserves to be
found and farmed into that. That is the reality. While one of the joint venture
partners at least, Chevron, favoured that or talked about that, as I understand
the evidence that was reported, it also talked about safety considerations of floating liquefied natural gas and
shutdowns for maintenance and the like and, therefore, interruptibility into
the supply schedule. They are real and significant issues. As a couple of the
joint venturers have said to me, that was never an option in reality. We could
certainly physically transfer gas by pipeline, either subsea or onshore, to the
North West Shelf site and maybe use it in 10 years or add additional trains
there, but the chances of aligning the North West Shelf joint venture with the
Browse joint venture would be close to zero.
Mr
M. McGowan : They don't agree with you!
The
SPEAKER : Leader of the Opposition!
Mr C.J. BARNETT : I
agree. It is almost impossible to align competitive joint ventures when they
have a range of interests around the world. However, the commonwealth has now
changed its conditions. It will be interesting to see what position the new
commonwealth government takes.
Mr W.J. Johnston interjected.
The SPEAKER :
Member for Cannington!
Mr C.J. BARNETT :
That will be interesting. But bear in mind that Western Australia probably owns
30 per cent of the Torosa field and maybe 15 per cent of the overall resource.
If the joint venturers get commonwealth agreement, they can pretty well do what
they want with the rest. I do not apologise for trying to get jobs for Western
Australia during construction and during operations. I do not apologise for
trying to achieve a great economic outcome for the local community, including
the Indigenous people, and I do not apologise for wanting to see that gas come
onshore into Western Australia. I simply do not apologise for that. I do not
know why the Leader of the Opposition opposes it.
Mr M. McGowan :
Yes, but you failed.
Mr C.J. BARNETT :
The Leader of the Opposition says failure; he is the give-up kid.
Mr M. McGowan interjected.
Mr C.J. BARNETT : I
did and I conceded that. Does that mean I have given up? No it does not; not at
all. I do not give up.
Mr W.J. Johnston : ''I
failed.''
The SPEAKER :
Member for Cannington!
Mr C.J. BARNETT :
The member for Cannington failed and failed and put a full stop —
Mr W.J. Johnston :
That was your quote.
Mr C.J. BARNETT :
Okay —
The SPEAKER : Member for Cannington, I call you to
order for the first time.
Mr C.J. BARNETT :
Yes, at the time I said I had failed, and I have. I concede that; I said it
publicly in this place.
Mr P.B. Watson interjected.
The SPEAKER : Member for Albany!
Mr C.J. BARNETT :
Does that mean the Liberal–National government will give up? No; it
does not because the history of development in Western Australia is that it has
always occurred through Liberal–National governments. From John Forrest
onwards, we can go through every major project. We on this side of the house
achieve the great developments. They are difficult but we will not give up. The
problem the Browse joint venture has today is that it does not have alignment
on the development of the project, environmental assessment, royalty or
petroleum resource rent tax returns. The biggest job for the head of that joint
venture is to get alignment. It does not have that at the moment. Proposals
have been put around about floating LNG, maybe building a smaller-scale
pipeline into the Kimberley, maybe having it delivered by ship into a receival
terminal in Perth or maybe providing gas to New South Wales through shipping.
All those ideas are out there but at the end of the day they do not have alignment.
I will not roll over and simply let them do what they wish with the 15 per cent
of gas that belongs to the people of Western Australia. Although it might be
only 15 per cent, it accounts for 2 trillion or 3 trillion cubic feet of gas,
which belongs to us. If the Leader of the Opposition has forgotten, it is the
responsibility of members of this Parliament to act in the interests of the
people and the economy of the state of Western Australia. Do not just knock
from the outside; stand up for this state.
up for one moment.
Several members interjected.
Mr C.J. BARNETT :
Members opposite laugh but —
Several members interjected.
Mr M. McGowan : You
did in estimates; you said, ''I failed''.
Mr C.J. BARNETT :
Yes, I failed to achieve it in the time frame I wanted, but I will not give up.
Do not gaze up to the gallery; they are not watching you.
Several members interjected.
The
SPEAKER : Leader of the Opposition, I formally call you to order for the
first time today. Member for Albany, I formally call you to order for the first
time today. Can you allow the Premier to answer the question at least?
Mr C.J. BARNETT :
The original version of the Browse joint venture operated under conditions set
by the commonwealth and the state that required the gas to come onshore in the
Kimberley at a selected site. Those were the conditions. Some of the partners—Chevron,
certainly—talked about bringing gas into the North West Shelf project.
As I have asked in this house before, what would that mean? That would mean
that development of the Browse gas project would be put back quite some time,
because the North West Shelf project has sufficient reserves to operate until
the late 2020s on proven reserves, and we would expect other reserves to be
found and farmed into that. That is the reality. While one of the joint venture
partners at least, Chevron, favoured that or talked about that, as I understand
the evidence that was reported, it also talked about safety considerations of floating liquefied natural gas and
shutdowns for maintenance and the like and, therefore, interruptibility into
the supply schedule. They are real and significant issues. As a couple of the
joint venturers have said to me, that was never an option in reality. We could
certainly physically transfer gas by pipeline, either subsea or onshore, to the
North West Shelf site and maybe use it in 10 years or add additional trains
there, but the chances of aligning the North West Shelf joint venture with the
Browse joint venture would be close to zero.
Mr
M. McGowan : They don't agree with you!
The
SPEAKER : Leader of the Opposition!
Mr C.J. BARNETT : I
agree. It is almost impossible to align competitive joint ventures when they
have a range of interests around the world. However, the commonwealth has now
changed its conditions. It will be interesting to see what position the new
commonwealth government takes.
Mr W.J. Johnston interjected.
The SPEAKER :
Member for Cannington!
Mr C.J. BARNETT :
That will be interesting. But bear in mind that Western Australia probably owns
30 per cent of the Torosa field and maybe 15 per cent of the overall resource.
If the joint venturers get commonwealth agreement, they can pretty well do what
they want with the rest. I do not apologise for trying to get jobs for Western
Australia during construction and during operations. I do not apologise for
trying to achieve a great economic outcome for the local community, including
the Indigenous people, and I do not apologise for wanting to see that gas come
onshore into Western Australia. I simply do not apologise for that. I do not
know why the Leader of the Opposition opposes it.
Mr M. McGowan :
Yes, but you failed.
Mr C.J. BARNETT :
The Leader of the Opposition says failure; he is the give-up kid.
Mr M. McGowan interjected.
Mr C.J. BARNETT : I
did and I conceded that. Does that mean I have given up? No it does not; not at
all. I do not give up.
Mr W.J. Johnston : ''I
failed.''
The SPEAKER :
Member for Cannington!
Mr C.J. BARNETT :
The member for Cannington failed and failed and put a full stop —
Mr W.J. Johnston :
That was your quote.
Mr C.J. BARNETT :
Okay —
The SPEAKER : Member for Cannington, I call you to
order for the first time.
Mr C.J. BARNETT :
Yes, at the time I said I had failed, and I have. I concede that; I said it
publicly in this place.
Mr P.B. Watson interjected.
The SPEAKER : Member for Albany!
Mr C.J. BARNETT :
Does that mean the Liberal–National government will give up? No; it
does not because the history of development in Western Australia is that it has
always occurred through Liberal–National governments. From John Forrest
onwards, we can go through every major project. We on this side of the house
achieve the great developments. They are difficult but we will not give up. The
problem the Browse joint venture has today is that it does not have alignment
on the development of the project, environmental assessment, royalty or
petroleum resource rent tax returns. The biggest job for the head of that joint
venture is to get alignment. It does not have that at the moment. Proposals
have been put around about floating LNG, maybe building a smaller-scale
pipeline into the Kimberley, maybe having it delivered by ship into a receival
terminal in Perth or maybe providing gas to New South Wales through shipping.
All those ideas are out there but at the end of the day they do not have alignment.
I will not roll over and simply let them do what they wish with the 15 per cent
of gas that belongs to the people of Western Australia. Although it might be
only 15 per cent, it accounts for 2 trillion or 3 trillion cubic feet of gas,
which belongs to us. If the Leader of the Opposition has forgotten, it is the
responsibility of members of this Parliament to act in the interests of the
people and the economy of the state of Western Australia. Do not just knock
from the outside; stand up for this state.
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