NEWS ARCHIVE

Gorgon takes rejection on the chin

With the EPA and the Conservation Commission rejecting ChevronTexaco's Barrow Island development ...

Not unexpectedly the JV partners are remaining fairly tight lipped about the submissions, acknowledging that there is a long way to go in the review process and pointing towards the few positive points raised by the independent Allens Consulting Group report.

"I think that the issues that have been raised by the EPA are consistent with those identified by the Gorgon joint venture in its social, economic and environmental review," said Gorgon external affairs manager Peter Goglan.

"We support the robust process that was requested by the government as a means of clearly identifying the environmental issues as well as the economic benefits of an $11 billion investment in WA.

"However, as confirmed in the government report, Barrow Island is the only commercially viable option for developing Gorgon in a timeframe that will enable us to compete for current market opportunities.

"With that we stand on our forty year record of successfully maintaining the conservation values of Barrow Island and we know that we can continue to do that in the future."

DOIR director general and chair of the Standing Interagency Committee, Dr Jim Limerick, was also quick to point out that this is just the first step in a long process and that the government is trying to maintain an open process on this unique proposal.

"The government really has to balance the potential to monetise the greater Gorgon resource, which is about 25% of Australia's total gas resources, in a circumstance where the Gorgon JV is saying Barrow Island is the only viable option for a gas processing plant," Limerick said.

"However, Barrow Island is an 'A class' reserve with extremely high-class conservation levels."

"Yet even if the government gives in-principle approval for the use of Barrow Island, that then has to go to parliament to get formal statutory approval which would take till the end of the year. This would be followed by the formal statutory environmental processes of both the state and the Commonwealth, which would take another year after that.

"Gorgon is looking to reach production by 2008 and in the light of recent Sakhalin, Bayu-Undan and Tangguh developments they would be looking to be in a fairly robust position to be able to claim a solid share of the market," said Limerick.

The Gorgon JV partners now have six weeks to digest the findings in the submissions while the public is allowed to register their view on the process.

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