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Australia approves 17.8-billion-dollar Gorgon gas project

by Staff Writers
Sydney (AFP) Oct 10, 2007
The Australian government gave a green light Wednesday to the 20-billion-dollar (17.8-billion-US) Gorgon gas development after imposing strict conditions designed to protect endangered species.

The decision allows Gorgon joint venture partners Chevron, ExxonMobil and Royal Dutch Shell to build a liquefied natural gas plant on Barrow Island, a nature reserve about 70 kilometres (44 miles) off Western Australia.

Environment Minister Malcolm Turnbull said the project would inject 20 billion dollars and 6,000 jobs into the economy.

"Strict environmental protection measures will be required to protect Commonwealth environment matters, including listed threatened and migratory species and rare vegetation on Barrow Island," Turnbull said.

Western Australia's state environment agency initially rejected the proposal last year because of concerns about its impact on local wildlife, including the endangered flatback turtle.

Green groups opposed the project saying it would irreparably damage the turtles breeding grounds.

But Turnbull said the developers had agreed to a 60-million-dollar program to protect the turtle and other endangered species.

He said the federal government would spend another 60 million on a carbon storage and capture system to minimise emissions.

"This commitment, coupled with today's decision, demonstrates that we can successfully achieve sustainable development through balancing environmental and economic considerations," Turnbull said.

Chevron Australia's Gorgon general manager Colin Beckett said the decision was "a welcome outcome after four years of rigorous state and federal assessment."

He said the Gorgon project had an estimated resource base of more than 40 trillion cubic feet of gas and a nominal development life of around 60 years.

It is the second controversial development approved by Turnbull within a week after he gave the go-ahead last Thursday to a 2.0-billion-dollar (1.7-billion-US) pulp mill in the island state of Tasmania.

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