Prospect Magazine June – August 2013
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WESTERN AUSTRALIA’S INTERNATIONAL RESOURCES DEVELOPMENT MAGAZINE June 2013 – August 2013 $3 (inc GST) Under guard WA’s northern assets protected Print post approved PP 665002/00062 DEPARTMENT OF STATE DEVELOPMENT International Trade and Investment 1 Adelaide Terrace East Perth, Western Australia 6004 • AUSTRALIA Tel: +61 8 9222 0566 • Fax: +61 8 9222 6151 Email: [email protected] www.dsd.wa.gov.au INTERNATIONAL OFFICES Europe European Office • 5th floor, The Australia Centre Corner of Strand and Melbourne Place London WC2B 4LG • UNITED KINGDOM The Western Australian economy grew by 6.7 per cent in the 2011-12 financial Tel: +44 20 7240 2881 • Fax: +44 20 7240 6637 year, to $239 billion, primarily due to an intense investment phase in iron ore India — Mumbai and LNG production. Western Australian Trade Office Western Australia now produces 26 per cent of the world’s iron ore, up from 93 Jolly Maker Chambers No 2 19 per cent four years ago. Our share of world LNG production is expected to 9th floor, Nariman Point • Mumbai 400 021 • INDIA grow substantially over the next four years, from 15 million tonnes in 2011-12 Tel: +91 22 6630 3973 • Fax: +91 22 6630 3977 to almost 50 million tonnes in 2016-17. Indonesia — Jakarta After speaking with senior government and resources industry representatives Western Australia Trade Office in Beijing and Tokyo this month, the State Government is confident demand for Wisma Budi Building • floor 5 Suite 504 natural gas will continue. JI HR Rasuna Said Kav C-6 Kuningan, Jakarta 12940 • INDONESIA The desire for a cleaner environment in China in particular is expected to drive Tel: +62 21 5290 2860 • Fax: +62 21 5296 2722 an increase in its reliance on natural gas from five per cent of the country’s energy mix, to as much as 15 per cent by 2020. In Japan, the debate over reliance Japan — Tokyo on nuclear power remains difficult and is also likely to lead to sustained reliance Government of Western Australia, Tokyo Office on other sources of clean energy. This presents huge opportunities for WA. 14th floor, Imperial Tower 1-1-1 Uchisaiwai-cho Chiyoda-ku The record levels of business investment during the past few years means, Tokyo 100-0011 • JAPAN while there are signs the resources economic cycle has peaked, there is still a Tel: +81 3 5157 8281 • Fax: +81 3 5157 8286 significant amount of exploration, project construction and project expansions in the pipeline. In the first quarter of 2013 the Department of Mines and Petroleum Japan — Kobe received 676 exploration license applications. Western Australian Government Office The mining industry invested a record $39 billion in Western Australia during 6th floor, Golden Sun Building 4-3-6 Nakayamate-dori 2012. Figures show the commitment to projects across the State remains strong, Chuo-Ku • Kobe 650-0004 • JAPAN as evidenced by the list of major projects at the back of the magazine. Tel: +81 78 242 7705 • Fax: +81 78 242 7707 The long term dividends of the intense business investment phase are evident in the strong export growth projected to 2015-16 of between six per cent and seven Middle East — Dubai per cent each year. Western Australian Trade Office • 106, Emarat Atrium PO Box 58007 • Dubai • UNITED ARAB EMIRATES The substantial increase in the State’s iron ore and LNG production capacity Tel: +971 4 343 3226 • Fax: +971 4 343 3238 will drive economic growth for the next few years, with growth of more than four per cent a year forecast to 2015-16. People’s Republic of China — Shanghai Western Australian Trade Office Colin Barnett Room 2204 • CITIC Square PREMIER OF WESTERN AUSTRALIA & MINISTER FOR STATE DEVELOPMENT 1168 Nanjing Road West Shanghai 20004 • PEOPLE’S REPUBLIC OF CHINA Bill Marmion Tel: +86 21 5292 5899 • Fax: +86 21 5292 5889 MINISTER FOR MINES AND PETROLEUM People’s Republic of China — Hangzhou Western Australian Trade and Investment Promotion ISSN 1037-4590 Hangzhou Representative Office Room 1705 • World Trade Office Plaza Prospect Zhejiang World Trade Centre Western Australian Prospect magazine is published quarterly by the 122 Shuguang Road • Hangzhou 310007 Western Australian Government’s Department of Mines and Petroleum (DMP) PEOPLE’S REPUBLIC OF CHINA and Department of State Development (DSD). Tel: +86 571 8795 0296 • Fax: +86 571 8795 0295 DSD Editorial management: Greg Smith, DSD Communications and Marketing Division. Tel: +61 08 9222 0417 • Fax: +61 08 9222 0505 DMP Editorial management: Peter W. Lewis, DMP Communications and Marketing Division. Singapore Tel: +61 08 9222 3572 • Fax: +61 08 9222 3862 Western Australian Trade and Investment Office Subscriptions: Gerard O’Neill. Tel: +61 08 9222 3821 • Email: [email protected] Suntec Tower Four, #20-02 6 Temasek Boulevard • SINGAPORE 038986 Disclaimer Prospect has been compiled in good faith by the Department of Mines and Petroleum (DMP) and Department of State Development (DSD). Opinions Tel: +65 6836 5626 • Fax: +65 6836 5698 expressed in Prospect are those of the authors and do not necessarily represent the views, or have the endorsement of DMP and DSD. DMP and DSD has used all reasonable endeavours to ensure the material contained in this publication is correct, but it is intended to be general in nature. No representation is made with regard to the completeness or accuracy of the information contained herein. DMP and DSD disclaims any or all liability South Korea — Seoul for loss or damage whatsoever suffered or incurred resulting from the use of or reliance on information contained herein. Readers of this publication should make and rely on their own enquiries, research and judgements in making decisions affecting their own or any other persons interest. Western Australian Trade and Investment Office Unit 702 • 7th Floor • Kwanghwamoon Building 211 Sejongno, Jongno-gu Cover photo: HMAS Ballarat sails past the gas platform, John Brookes, 110km off the WA coast, as the ship transits through the North West Shelf of Australia. Seoul • South Korea 110-730 • KOREA Photo: Royal Australian Navy Tel: +82 2 722 1217 • Fax: +82 2 722 1218 Scan this QR code to view links to all the department’s publications In this issue 02 06 08 11 12 17 02 Shale gas myths debunked 11 It’s a gas at Gingin The State Government’s leading expert on natural gas from The State’s newest gas production plant is now operating in shale and tight rock dispels the myths and mistruths about the relatively-untouched Perth Basin, just north of Perth. this vast natural resource. 12 Power project ‘strung up’ 06 Under guard Helicopters are being used to install 190km of power lines in Resources in Western Australia are coming under increasing the State’s biggest infrastructure project in 25 years. protection from the Royal Australian Navy. 17 Waste energy to plug Pilbara 08 New Minister sets priorities Recently-appointed Minister for Mines and Petroleum power gap Bill Marmion aims to improve the business operating The State Government’s has just given environmental approval environment for companies in WA. for WA’s (and Australia’s) first waste-to-energy plant. Department of Mines and Petroleum Department of Mines and Petroleum Department of State Development Department of State Development www.dmp.wa.gov.au www.dsd.wa.gov.au WA petroleum regulator sets record straight Photo: Empire Oil and Gas NL Western Australia’s leading petroleum “WA’s rigorous regulatory framework its early exploration and proof-of- expert used a recent Australian for petroleum activities, including concept phase for at least the next Petroleum Production and Exploration fraccing, has the strongest chemical few years. Association (APPEA) Conference and disclosure requirements of any “This early exploration and proof of Exhibition in Brisbane to address Australian jurisdiction, as well as concept phase means we have time to misinformation relating to the State’s rigorous environmental and safety learn from other jurisdictions, work emerging natural gas from shale and approval processes and international with communities, incorporate latest tight rock sector. standards for well design and integrity. information and technology and ensure Department of Mines and Petroleum “Despite what has been claimed, all the our regulations are robust and leading (DMP) Petroleum Executive Director chemicals used in fraccing in WA must practice,” Mr Tinapple said. Bill Tinapple said the department be disclosed.” “Looking to the future, we would expect would continue to provide correct Currently, there are no applications any shale or tight gas project to operate and up-to-date information regarding for fraccing projects submitted to in compliance with the law and with the sector, following the ongoing the department, which expects the respect for the interests of Western circulation of inaccurate information shale and tight sector to remain in Australian communities.” by lobby groups. “While we recognise the important contribution lobby groups make to public policy debates, it’s New information about shale and tight gas disappointing some organisations do DMP has developed a Gantt chart to assist companies wishing to undertake not always cite factual and reliable onshore oil and gas activities, including shale and tight gas exploration, and information in relation to this matter,” development activities in Western Australia. Mr Tinapple said. The information in the Gantt chart will assist in scoping project approvals, Some of the inaccurate claims include including timelines, required from government before an activity can describing the fluid used in hydraulic commence and is available at http://www.dmp.wa.gov.au/17769.aspx fracturing (fraccing) as a ‘toxic chemical For more information on shale and tight gas activity regulations, including cocktail’ kept hidden from the public, up-to-date fact sheets, please visit www.dmp.wa.gov.au/shaleandtightgas and that fraccing causes health issues and contaminates water aquifers.