Work starts on $43bn Gorgon project

Gold plated shovels have been used to turn the first sod on the massive $43 billion Gorgon natural gas project on Barrow Island, off the state's Pilbara coast.

Chevron, Shell and ExxonMobil executives shared the honours of officially starting the operation with federal Resources and Energy Minister Martin Ferguson and Premier Colin Barnett.

Construction work is already underway on the island for the planned building of three liquefied natural gas processing trains, a domestic gas plant, an LNG loading facility and a carbon injection plant.

Establishing the project will take about five years, with more than 3,000 construction workers living on the 30,000-hectare island ahead of the first gas shipment scheduled for 2014.

Chevron Asia Pacific Exploration and Production president Jim Blackwell said the ceremony formally recognised the start of construction of Chevron's and Australia's largest single resources project.

"The greater Gorgon area is estimated to have 40 trillion cubic feet of natural gas resources and is well positioned to meet the growing demand for natural gas in the Asia Pacific region, Mr Blackwell said.

Mr Ferguson said the project was a significant one globally, as it would increase the security of the world energy sector.

He said it would help Australia climb the ladder from its position as the fifth largest exporter of LNG in the world.

Coupled with other gas projects in the pipeline, such as Inpex, off the far north WA coast, and the Sunrise project near Timor Leste, Australia had become an important global player, Mr Ferguson said.

"These opportunities mean a great wealth opportunity for Australia," he said.

The minister said there was an onus on Australia to leave a legacy including a skills base for the future and indigenous employment and training opportunities.

Mr Barnett said the project would bring enormous revenue to the federal and state governments.

He said the joint venture partners were entrusted with looking after the island.

"Barrow Island is a very special place. This island is a remnant of ancient Australia," Mr Barnett said.

"We trust Chevron and Shell and ExxonMobil to look after this island."

Natural historian Harry Butler, who has worked on the island for decades, briefed the visitors to Barrow on the natural assets of the A class nature reserve.

Guests included US Ambassador Jeffrey Bleich and Australia's ambassador-in-waiting to the US, Kim Beazley.