The Chamber of Commerce and Industry WA has welcomed the state government's environmental nod for the development of Apache Corporation's Devil Creek gas plant, but says there is room for improvement in the approvals process.
The Chamber of Commerce and Industry WA has welcomed the state government's environmental nod for the development of Apache Corporation's Devil Creek gas plant, but says there is room for improvement in the approvals process.
Environment Minister Donna Faragher yesterday gave approval for the construction of the onshore gas plant, to be located south of Karratha, which will process gas from the Reindeer fields.
The project is a joint venture between Apache and Adelaide-based Santos.
The approval follows on off project decisions around six months ago when in December, both companies deferred development of the project due to the sharp deterioration in the global economy which had affected the proposed foundation customer.
A month later the project was back on after the JV partners secured a $US585 million gas supply contract with CITIC Pacific, which will use the gas for its $US3.5 billion Sino Iron project near Cape Preston.
The operation will boost domestic gas supply by up to 220 terajoules a day to the Dampier to Bunbury natural gas pipeline.
"CCI believes the decision sends an important signal to current, and potential, investors that Western Australia is open for business, and that the State welcomes projects that will stimulate economic activity, generate wealth for the State and the Nation, and create jobs," CCIWA said.
However, CCIWA said there is still room for improvement in the state approvals process.
"CCI has long advocated the need to streamline the State's unwieldy planning and approvals processes to promote Western Australia as a preferred destination to do business.
"For a state and an economy that is heavily dependent on resources projects, and the wealth they generate, governments can not afford to allow excessive red tape to stymie investment and growth."
The announcement is below:
The State's peak business organisation, the Chamber of Commerce and Industry of Western Australia, welcomes the State Government's decision to grant conditional environmental approval for a new gas project in the State's North West.
Apache's Devil Creek project, located off the Pilbara coast, will help strengthen the State's vulnerable energy network by providing up to an extra 220 terajoules of domestic gas per day to the Dampier-Bunbury Natural Gas Pipeline.
For Western Australia to promote itself as a desirable place to invest and do business, especially during these challenging economic times, it is important that business and industry has access to secure and reliable sources of energy.
CCI believes the decision sends an important signal to current, and potential, investors that Western Australia is open for business, and that the State welcomes projects that will stimulate economic activity, generate wealth for the State and the Nation, and create jobs.
CCI recognises that Western Australia's planning and approvals systems are important in helping to ensure the best interests of the State are considered in the development of projects.
Nevertheless, there is room for improvement.
CCI has long advocated the need to streamline the State's unwieldy planning and approvals processes to promote Western Australia as a preferred destination to do business.
For a state and an economy that is heavily dependent on resources projects, and the wealth they generate, governments can not afford to allow excessive red tape to stymie investment and growth.
