A new study released today highlights the economic benefits of diversifying and growing downstream gas processing industries in Western Australia.
Commissioned by the McGowan Government and undertaken by ACIL Allen, the independent study investigates opportunities and barriers for establishing new downstream gas processing industries in Western Australia.
Market modelling included in the study shows there is gas available in Western Australia to support opportunities for investment in new downstream gas processing industries, including urea, methanol and ammonia.
Through its WA Domestic Gas Policy, the McGowan Government has ensured security of supply for all Western Australians.
The McGowan Government is working with the Liquefied Natural Gas (LNG) Jobs Taskforce to grow the gas industry, create local jobs and establish Western Australia as a global LNG hub.
Western Australia is already one of the world's largest producers of LNG, supplying 12 per cent of global LNG exports and 57 per cent of Australia's LNG exports in 2020.
ACIL Allen's economic impact assessment predicts that projects in downstream gas processing industries, operating over a 20-year lifespan, could deliver between $3 billion to $10 billion in Gross State Product, due to their large scale and the realisation of new gas supplies in Western Australia.
Three variables for the success of downstream projects were identified in the study including location, capital expenditure and gas availability.
The study reports 19 findings and seven recommendations for consideration by the WA Government across gas availability, project-ready industrial areas, government assistance and government project facilitation capacity.
The McGowan Government will consider the objectives and gas needs for new downstream processing projects through project facilitation activities, infrastructure support and the WA Domestic Gas Policy approvals.
To view the report and the WA Government's response, visit https://www.wa.gov.au/government/publications/western-australian-gas-and-downstream-opportunities-study
As stated by State Development, Jobs and Trade Minister Roger Cook:
"This Western Australian Gas and Downstream Industries Opportunities Study confirms that gas will be an important part of the WA economy well into the future, as the State continues to be one of the world's largest producers of LNG.
"We are in a prime position to capitalise further on our local gas industry, and create more jobs for Western Australians, while enabling the transition to renewable energy.
"The LNG Jobs Taskforce is committed to supporting the industry, and this independent study proves that there are still significant opportunities for the WA economy through gas."
