Fed: Aust will miss out on $15 bln without Sunrise: Martin
By Shane Wright
CANBERRA, April 3 AAP - Australia would miss out on $15 billion if oil companies Shelland Woodside failed to pump liquified natural gas to the Northern Territory for processing,the territory's chief minister said today.
Clare Martin said the NT would continue to rely on federal funding if a proposal byShell and Woodside to process LNG off-shore was approved.
She also warned a series of major projects in the territory would have to be abandoned.
Shell, Woodside and Phillips Petroleum are looking to develop the Greater Sunrise naturalgas field off the territory's north coast.
Originally it was planned the gas would be pumped back to the territory, but now Shelland Woodside have proposed a world-first floating barge where the processing would beconducted.
Gas from Sunrise had been planned to be pumped into the national grid, but if processedvia the barge, it will be shipped directly to overseas markets.
Ms Martin today released an ACIL Consulting report which found that without Sunrisegas, South Australia and east coast states would not have enough gas to meet a moderateincrease in demand.
The report found Sunrise would add 10,600 full time jobs, force down the price of gasin some states, and create $15 billion in additional national income.
Ms Martin said it was ludicrous Woodside, which was last year protected from a takeoverby Shell on national interest grounds, was now arguing in favour of off-shore processing.
"We believe this case must be resolved in the national interest," she said.
"It is an Australian resource and it must be used for Australia's benefit.
"We now have Woodside in boardrooms around Australia arguing against our view thatthis giant Australian gas resource should come onshore to Australia in the national interest."
Ms Martin said the delays over Sunrise had already cost the territory several major projects.
There were others, including a $3.6 billion aluminium smelter and a link between Sunshineand the national gas grid at Moomba in South Australia, which were now on hold.
"This gas is important to Australia, this gas is important to the territory, and inmany senses it's the territory's difference between really taking that next step forwardand not," she said.
Ms Martin said pressure had to be exerted by the federal government on Shell and Woodside,which claim the onshore processing plant would cost them $2 billion, to change their positions.
AAP sw/daw/jmd/bwl r
KEYWORD: SUNSHINE
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