The Premier details progress in WA's resources sector, highlighting the first LNG shipment to China and the opening of ROC Oil's Arrowsmith facility. He notes bipartisan support at the state level but criticizes the federal budget for lacking exploration incentives.

AnsweredQoN 286Legislative Assembly
Asked
18 May 2006
Portfolio
Premier

QuestionView source ↗

RESOURCES SECTOR
Can the Premier please advise the house of the latest progress in Western Australia’s booming resources sector? Mr A.J. CARPENTER

AnswerView source ↗

I thank the member for Geraldton for the question and his intense interest in that issue. Yesterday I travelled to Karratha to witness a very important day in this state’s rich economic history. Four years after Western Australia’s successful bid to win the $25 billion liquefied natural gas supply contract to China, the first LNG shipment has been loaded and, all things going well today, it should be on its way. Mr Speaker, it being in your electorate, you will be most interested to know that this has happened. It marks the first export phase of Australia’s largest ever single trade deal. It is also the start of a 25-year trade relationship between the North West Shelf venture and China’s Guangdong Dapeng LNG Company Ltd. The LNG was loaded on the Northwest Seaeagle over the past few days and we had a small ceremony on the vessel yesterday afternoon. It left Karratha this morning, bound for southern China, carrying 125 000 cubic metres of LNG. More than three million tonnes of LNG will be shipped to China each year. It is China’s first contract for LNG. Already it has another benefit to Australia. It has excited our already established trade partners to make sure that they are securing their long-term supply contacts for the future. This inaugural shipment is the first LNG sent to China from anywhere in the world. Australia and China continue to forge strong business relationships, friendships and cultural ties as a result of its growing trade relations. I look forward to going to China on 28 June for a ceremony to mark that occasion. Yesterday I was with the Acting Prime Minister Mark Vaile. The federal government has been very supportive in securing that arrangement. This morning I was with the member for Geraldton and Hon Murray Criddle, from the other place, at Arrowsmith, south of Dongara, to open the ROC Oil Company Ltd’s facility at the Arrowsmith stabilisation plant. This is a wonderful facility. It was delightfully surprising to hear people from outside the member for Geraldton’s electorate waxing lyrical about his support for that development and the benefit that he has brought to the broader Geraldton, Dongara and Irwin communities. I do not think I have ever heard anything quite like it - a member from another electorate given so much attribution for success in that electorate. Well done, member for Geraldton. Cliff Head has been established as Australia’s fourth offshore oil-producing region after Bass Strait, the North West Shelf and the Timor Sea. It will contribute about 10 per cent of Western Australia’s oil requirements in its first year alone and is obviously therefore a great boost to our already thriving economy, producing 14 million barrels of oil over the life of the project, in the absence of even further resources being found. I repeat the comment I made this morning that launching these projects is not the time to make political statements and that there is bipartisan support for this project at the state level. However, we need some support from the commonwealth for exploration. It was disappointing that no consideration was given to incentives for exploration in the last federal budget, unlike our budget, which was investing for the future and making decisions about the longer term, not just the short term. There was nothing of that ilk whatsoever in the federal budget. The Chamber of Minerals and Energy nailed it when it said that the federal budget was deficient in its support for infrastructure and exploration. Those two issues are very critical for the WA economy in the longer term and obviously for the national economy. I congratulate everybody involved with the ROC Oil development and their partners, including the Japanese partners. It is a wonderful development for this state. There are spin-offs and roll-on employment benefits for all of us. We would like to see more resource fields opened up in that way. The developers took a risk going into an exploration field, and the risk paid off brilliantly. Congratulations to them all.
Mr A.J. CARPENTER replied: I thank the member for Geraldton for the question and his intense interest in that issue. Yesterday I travelled to Karratha to witness a very important day in this state’s rich economic history. Four years after Western Australia’s successful bid to win the $25 billion liquefied natural gas supply contract to China, the first LNG shipment has been loaded and, all things going well today, it should be on its way. Mr Speaker, it being in your electorate, you will be most interested to know that this has happened. It marks the first export phase of Australia’s largest ever single trade deal. It is also the start of a 25-year trade relationship between the North West Shelf venture and China’s Guangdong Dapeng LNG Company Ltd. The LNG was loaded on the Northwest Seaeagle over the past few days and we had a small ceremony on the vessel yesterday afternoon. It left Karratha this morning, bound for southern China, carrying 125 000 cubic metres of LNG. More than three million tonnes of LNG will be shipped to China each year. It is China’s first contract for LNG. Already it has another benefit to Australia. It has excited our already established trade partners to make sure that they are securing their long-term supply contacts for the future. This inaugural shipment is the first LNG sent to China from anywhere in the world. Australia and China continue to forge strong business relationships, friendships and cultural ties as a result of its growing trade relations. I look forward to going to China on 28 June for a ceremony to mark that occasion. Yesterday I was with the Acting Prime Minister Mark Vaile. The federal government has been very supportive in securing that arrangement. This morning I was with the member for Geraldton and Hon Murray Criddle, from the other place, at Arrowsmith, south of Dongara, to open the ROC Oil Company Ltd’s facility at the Arrowsmith stabilisation plant. This is a wonderful facility. It was delightfully surprising to hear people from outside the member for Geraldton’s electorate waxing lyrical about his support for that development and the benefit that he has brought to the broader Geraldton, Dongara and Irwin communities. I do not think I have ever heard anything quite like it - a member from another electorate given so much attribution for success in that electorate. Well done, member for Geraldton. Cliff Head has been established as Australia’s fourth offshore oil-producing region after Bass Strait, the North West Shelf and the Timor Sea. It will contribute about 10 per cent of Western Australia’s oil requirements in its first year alone and is obviously therefore a great boost to our already thriving economy, producing 14 million barrels of oil over the life of the project, in the absence of even further resources being found. I repeat the comment I made this morning that launching these projects is not the time to make political statements and that there is bipartisan support for this project at the state level. However, we need some support from the commonwealth for exploration. It was disappointing that no consideration was given to incentives for exploration in the last federal budget, unlike our budget, which was investing for the future and making decisions about the longer term, not just the short term. There was nothing of that ilk whatsoever in the federal budget. The Chamber of Minerals and Energy nailed it when it said that the federal budget was deficient in its support for infrastructure and exploration. Those two issues are very critical for the WA economy in the longer term and obviously for the national economy. I congratulate everybody involved with the ROC Oil development and their partners, including the Japanese partners. It is a wonderful development for this state. There are spin-offs and roll-on employment benefits for all of us. We would like to see more resource fields opened up in that way. The developers took a risk going into an exploration field, and the risk paid off brilliantly. Congratulations to them all.
I thank the member for Geraldton for the question and his intense interest in that issue. Yesterday I travelled to Karratha to witness a very important day in this state’s rich economic history. Four years after Western Australia’s successful bid to win the $25 billion liquefied natural gas supply contract to China, the first LNG shipment has been loaded and, all things going well today, it should be on its way. Mr Speaker, it being in your electorate, you will be most interested to know that this has happened. It marks the first export phase of Australia’s largest ever single trade deal. It is also the start of a 25-year trade relationship between the North West Shelf venture and China’s Guangdong Dapeng LNG Company Ltd. The LNG was loaded on the Northwest Seaeagle over the past few days and we had a small ceremony on the vessel yesterday afternoon. It left Karratha this morning, bound for southern China, carrying 125 000 cubic metres of LNG. More than three million tonnes of LNG will be shipped to China each year. It is China’s first contract for LNG. Already it has another benefit to Australia. It has excited our already established trade partners to make sure that they are securing their long-term supply contacts for the future. This inaugural shipment is the first LNG sent to China from anywhere in the world. Australia and China continue to forge strong business relationships, friendships and cultural ties as a result of its growing trade relations. I look forward to going to China on 28 June for a ceremony to mark that occasion. Yesterday I was with the Acting Prime Minister Mark Vaile. The federal government has been very supportive in securing that arrangement. This morning I was with the member for Geraldton and Hon Murray Criddle, from the other place, at Arrowsmith, south of Dongara, to open the ROC Oil Company Ltd’s facility at the Arrowsmith stabilisation plant. This is a wonderful facility. It was delightfully surprising to hear people from outside the member for Geraldton’s electorate waxing lyrical about his support for that development and the benefit that he has brought to the broader Geraldton, Dongara and Irwin communities. I do not think I have ever heard anything quite like it - a member from another electorate given so much attribution for success in that electorate. Well done, member for Geraldton. Cliff Head has been established as Australia’s fourth offshore oil-producing region after Bass Strait, the North West Shelf and the Timor Sea. It will contribute about 10 per cent of Western Australia’s oil requirements in its first year alone and is obviously therefore a great boost to our already thriving economy, producing 14 million barrels of oil over the life of the project, in the absence of even further resources being found. I repeat the comment I made this morning that launching these projects is not the time to make political statements and that there is bipartisan support for this project at the state level. However, we need some support from the commonwealth for exploration. It was disappointing that no consideration was given to incentives for exploration in the last federal budget, unlike our budget, which was investing for the future and making decisions about the longer term, not just the short term. There was nothing of that ilk whatsoever in the federal budget. The Chamber of Minerals and Energy nailed it when it said that the federal budget was deficient in its support for infrastructure and exploration. Those two issues are very critical for the WA economy in the longer term and obviously for the national economy. I congratulate everybody involved with the ROC Oil development and their partners, including the Japanese partners. It is a wonderful development for this state. There are spin-offs and roll-on employment benefits for all of us. We would like to see more resource fields opened up in that way. The developers took a risk going into an exploration field, and the risk paid off brilliantly. Congratulations to them all.
This morning I was with the member for Geraldton and Hon Murray Criddle, from the other place, at Arrowsmith, south of Dongara, to open the ROC Oil Company Ltd’s facility at the Arrowsmith stabilisation plant. This is a wonderful facility. It was delightfully surprising to hear people from outside the member for Geraldton’s electorate waxing lyrical about his support for that development and the benefit that he has brought to the broader Geraldton, Dongara and Irwin communities. I do not think I have ever heard anything quite like it - a member from another electorate given so much attribution for success in that electorate. Well done, member for Geraldton. Cliff Head has been established as Australia’s fourth offshore oil-producing region after Bass Strait, the North West Shelf and the Timor Sea. It will contribute about 10 per cent of Western Australia’s oil requirements in its first year alone and is obviously therefore a great boost to our already thriving economy, producing 14 million barrels of oil over the life of the project, in the absence of even further resources being found. I repeat the comment I made this morning that launching these projects is not the time to make political statements and that there is bipartisan support for this project at the state level. However, we need some support from the commonwealth for exploration. It was disappointing that no consideration was given to incentives for exploration in the last federal budget, unlike our budget, which was investing for the future and making decisions about the longer term, not just the short term. There was nothing of that ilk whatsoever in the federal budget. The Chamber of Minerals and Energy nailed it when it said that the federal budget was deficient in its support for infrastructure and exploration. Those two issues are very critical for the WA economy in the longer term and obviously for the national economy. I congratulate everybody involved with the ROC Oil development and their partners, including the Japanese partners. It is a wonderful development for this state. There are spin-offs and roll-on employment benefits for all of us. We would like to see more resource fields opened up in that way. The developers took a risk going into an exploration field, and the risk paid off brilliantly. Congratulations to them all.
Cliff Head has been established as Australia’s fourth offshore oil-producing region after Bass Strait, the North West Shelf and the Timor Sea. It will contribute about 10 per cent of Western Australia’s oil requirements in its first year alone and is obviously therefore a great boost to our already thriving economy, producing 14 million barrels of oil over the life of the project, in the absence of even further resources being found. I repeat the comment I made this morning that launching these projects is not the time to make political statements and that there is bipartisan support for this project at the state level. However, we need some support from the commonwealth for exploration. It was disappointing that no consideration was given to incentives for exploration in the last federal budget, unlike our budget, which was investing for the future and making decisions about the longer term, not just the short term. There was nothing of that ilk whatsoever in the federal budget. The Chamber of Minerals and Energy nailed it when it said that the federal budget was deficient in its support for infrastructure and exploration. Those two issues are very critical for the WA economy in the longer term and obviously for the national economy. I congratulate everybody involved with the ROC Oil development and their partners, including the Japanese partners. It is a wonderful development for this state. There are spin-offs and roll-on employment benefits for all of us. We would like to see more resource fields opened up in that way. The developers took a risk going into an exploration field, and the risk paid off brilliantly. Congratulations to them all.
I congratulate everybody involved with the ROC Oil development and their partners, including the Japanese partners. It is a wonderful development for this state. There are spin-offs and roll-on employment benefits for all of us. We would like to see more resource fields opened up in that way. The developers took a risk going into an exploration field, and the risk paid off brilliantly. Congratulations to them all.

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