Martin Ferguson (Batman, Australian Labor Party, Minister for Resources and Energy) Share this | Hansard source

I thank the member for Solomon who, with the member for Lingiari and me, was fortunate to be able to attend the Inpex announcement in Darwin last month. This announcement in this current financial environment is very important for Australia. The announcement of Inpex last month in association with the French company Total potentially represents a proposed investment in Australia of $24 billion. Such an announcement from the Ichthys field in Western Australia represents the first potential development of the Browse field, which over time presents Australia with wonderful LNG export opportunities which are very important from a trade perspective.

Inpex’s announcement confirms that Australia remains a very attractive place for investment. That is important in the tough global economic environment that we confront as a nation today. We are still a very strong and attractive place for investments. When you think about that you understand why it is so important to Northern Australia. It potentially represents 2,000 jobs in construction and an extra 300 long-term jobs in production, which historically are high-paid, high-skilled jobs. It also presents for the Northern Territory significant business opportunities for small and medium sized businesses to actually grow and develop expertise in the LNG industry in the north of Australia for the future. For Darwin it also represents a very strong statement that Darwin has come of age as a major industrial province in Australia.

From the Australian government’s point of view, we are not content with the Inpex announcement alone. We are not accepting of the fact that in the last 30 years there have been developed only two major LNG export provinces in Australia—the North West Shelf and, to a lesser extent, the Northern Territory. We are a gas-rich nation. We have to continue to work with the state and territory governments and the private sector to actually secure investment in projects such as Gorgon, Sunrise, the Kimberley and Gladstone.

I am also pleased to report to the House in that context that the Timor-Leste government has appointed a Sunrise commissioner and the first meeting of the Sunrise commission will occur in Perth towards the end of this month. Hopefully, this will be another step forward in the development in partnership with the Timor-Leste government of further LNG export opportunities to the advantage of both countries.

But you should also appreciate that the LNG industry is important in terms of climate change and the issue of the environment. For every tonne of CO2 emitted in Australia during production, LNG saves four tonnes of CO2 when consumed in Japan and nine tonnes when consumed in China. In a carbon constrained world, Australian LNG is therefore very important to maintain continued sustainable growth in Asia—in places such as China, Japan and India—which is exceptionally important to Australia’s future economic prosperity. It is therefore our responsibility to continue to work in this tough global environment to secure investments such as this, because these investments are fundamental to our economic and social future. They create a foundation for jobs, investment, exports, infrastructure and economic growth.

The investment also potentially represents over time a big boost to export revenues for Australia. By way of information to the House, forecast production volumes from the Inpex project—eight million to nine million tonnes of LNG per year—are about equal to 50 per cent of current LNG annual production and 60 per cent of Australia’s current condensate or light crude oil.

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