China Petroleum Technology Breakthrough
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WESTERN AUSTRALIA’S INTERNATIONAL RESOURCES DEVELOPMENT MAGAZINE September–November 2003 $3 (inc GST) LNG Technology breakthrough China Massive supply potential Petroleum Big and getting bigger rint post approved PP 665002/00062 rint post approved P WESTERN AUSTRALIAN OFFICES Department of Industry and Resources Mineral House • 100 Plain Street • EAST PERTH WA 6004 Tel: +61 8 9222 3333 • Fax: +61 8 9222 3430 www.doir.wa.gov.au Investment 168–170 St Georges Terrace • PERTH Western Australia 6000 FROM THE MINISTER Postal address: Box 7606 • Cloisters Square PERTH Western Australia 6850 rom the first discovery of oil at Rough Range near Tel: +61 8 9327 5555 • Fax: +61 8 9222 3862 Email: [email protected] Exmouth 50 years ago, oil and gas have emerged as INTERNATIONAL OFFICES Western Australia’s primary resource exports. Today, their Europe F contribution to the Western Australian economy makes them Government of Western Australia European Office • 5th floor, Australia Centre our most important products. Corner of Strand and Melbourne Place Clive Brown, MLA LONDON WC2B 4LG • UNITED KINGDOM In 2002 alone, more than A$10.6 billion of petroleum products Minister for State Tel: +44 20 7240 2881 • Fax: +44 20 7240 6637 were generated. This has injected millions of dollars in the form Development Email: [email protected] India — Mumbai of royalties back into Western Australia, and has strongly Western Australian Trade Office contributed to the State’s fast economic growth rate. Current 93 Jolly Maker Chambers No 2 indicators suggest Western Australia’s rate of economic growth 9th floor, Nariman Point • MUMBAI 400 021 INDIA Tel: +91 22 230 3973/74/78 • Fax: +91 22 230 3977 will rise to 7% in 2003-04. However, State Treasury forecasts Email: [email protected] 4.5% for the same period. India — Chennai Western Australian Trade Office - Advisory Office The petroleum sector is also an important part of the State’s environmental strategy. 1 Doshi Regency • 876 Poonamallee High Road Kilpauk • Chennai 600 084 • INDIA Natural gas is now responsible for the majority of the State’s power supply. Natural gas Tel: +91 44 640 0407 • Fax: +91 44 643 0064 from the North West Shelf has emerged as the dominant environmentally friendly fuel E-mail: [email protected] source that will power Western Australia in the decades to come. Indonesia — Jakarta Western Australia Trade Office Regional industries and communities will also continue to benefit from our vast supply c/- Australian Trade Commission • Australian Embassy JI H R Rasuna Said Kav C15 - 16, Kuningan of natural gas. For example, construction will soon commence on a gas pipeline from Jakarta 12940 • INDONESIA Kambalda to Esperance. Tel: +62 21 2550 5331 • Fax: +62 21 522 7103 E-mail: [email protected] We are indeed entering an era promising enormous economic dividends, expertise in Indonesia — Surabaya new technologies, commodity diversification and the creation of new markets. Western Australian Trade Office Graha Pena 17th floor • Jalan Ahmed Yani 88 Surabaya 60234 INDONESIA Tel: +62 31 829 9979 • Fax: +62 31 829 9975 FROM THE DIRECTOR GENERAL Email: [email protected] Japan — Tokyo Western Australian Government Office n this edition of Prospect we highlight the exciting period of Australian Business Centre growth and expansion in the Western Australian petroleum 28th floor, New Otani Garden Court sector. 4-1 Kioicho, Chiyoda-Ku • TOKYO 102-0094 JAPAN I Tel: +81 3 5214 0791 • Fax: +81 3 5214 0796 Email: [email protected] Over the past 10 years, Western Australia has firmly positioned Japan — Kobe itself as one of the world’s leading suppliers of petroleum and Western Australian Government Office liquefied natural gas, with the North West Shelf and other gas 6th floor, Golden Sun Building • 3-6 Nakayamate-dori 4-Chome Chuo-Ku • KOBE 650-0004 JAPAN fields off the State’s coast ensuring the long-term supply of gas to Tel: +81 78 242 7705 • Fax: +81 78 242 7707 local and world markets. Jim Limerick Email: [email protected] Director General Malaysia Already generating more than A$10 billion worth of products Department of Industry Western Australian Trade Office annually, oil and gas development in Western Australia still and Resources 4th floor, UBN Tower • 10 Jalan P Ramlee KUALA LUMPUR 50250 MALAYSIA provides many new business and economic opportunities. Tel: +60 3 2031 8175/6 • Fax: +60 3 2031 8177 Email: [email protected] To support these opportunities the Department of Industry and Middle East Resources provides a range of services to industry. For example, Western Australian Trade Office • Emarat Atrium PO Box 58007 • Dubai • UNITED ARAB EMIRATES in addition to the comprehensive geoscientific data collected and Tel: +971 4 343 3226 • Fax: +971 4 343 3238 stored by the Department, software has been developed to link E-mail: [email protected] the huge databanks of exploration and prospecting information for easy, single point People’s Republic of China — Shanghai Western Australian Trade & Investment Promotion entry. Explorers and prospectors across the world can now access this information via our Shanghai Representative Office • Room 2208, CITIC Square website, www.doir.wa.gov.au. 1168 Nanjing Road West • Shanghai 200041 THE PEOPLE'S REPUBLIC OF CHINA The Department also continues to be active in assisting project developers in all facets of Tel: +86 21 5292 5899 • Fax: +86 21 5292 5889 Email: [email protected] project development requiring Government action, including access to suitable land and People’s Republic of China — Hangzhou infrastructure and obtaining the relevant development approvals. Western Australian Trade & Investment Promotion Hangzhou Representative Office Assisting companies to gain access to international markets is another key service Room 910 • World Trade Office Plaza available from the Department. In this edition of Prospect we report on China’s demand Zhejiang World Trade Centre 15 Shuguang Road • Hangzhou 310007 for more iron ore to meet its huge expansion plans, including infrastructure for the 2008 PEOPLES REPUBLIC OF CHINA Beijing Olympic Games. We also report on WMC Resources Ltd signing of a A$1 billion Tel: +86 571 8795 0296 • Fax: +86 571 8795 0295 E-mail: [email protected] agreement to supply product to China’s largest nickel producer, Jinchuan Group Ltd. Taiwan WA Business Development Manager There is no doubt that the resources sector remains an important focal point of Western Australian Commerce & Industry Office Australia’s economy. The Department of Industry and Resources is committed to Australian Business Centre supporting the ongoing development of future business and economic opportunities in Suite 2606, International Trade Building #333 Keelung Road Section 1 • TAIPEI 110 TAIWAN this sector. Tel: +886 2 8780 9118 ext 216 • Fax: +886 2 2757 6707 Email: nicholas.mckay@austrade,gov.au We hope you find Prospect an excellent introduction to some of these opportunities. Thailand WA Business Development Manager Australian Trade Commission • Australian Embassy 37 South Sathorn Road • BANGKOK 10120 • THAILAND Tel: +662 287 2680 Ext 3307 • Fax: +662 287 2589 E-mail: [email protected] in this issue special feature PETROLEUM In this edition, Prospect acknowledges the importance of petroleum. Apart from being Western Australia’s number one resource commodity, petroleum is the principal source of energy for the State, and plays a critical role in the development of Western Australia’s economy. Turn to pages 6-20 for more details. 2 ALUMINA 5 AMMONIA PLANT Background on why Alcoa World Alumina Australia Civil work starts on the first of Burrup Fertilisers’ A$630 plans to boost production at its Pinjarra alumina million ammonia plant, potentially the first of several new refinery from 3.4 Mt/a to 4 Mt/a. petrochemical projects on the Burrup Peninsula. 3 BOOMING IRON ORE TRADE 6 SCIENTIFIC BREAKTHROUGH Technology developed in Western Australia could make LNG China beckons more iron ore to meet its huge production 25% cheaper. expansion plans, including infrastructure for the 2008 Beijing Olympic Games. 18 GAS POWER 4 PIG IRON Construction begins on a new gas pipeline between Kambalda and Esperance, as well as a new gas-fired power Construction of an important downstream processing station at Esperance. project for Western Australia, the A$600 million HIsmelt pig iron plant at Kwinana, is now 30% 22 MINERAL EXPLORATION completed. Newly appointed AMEC chief pledges to stop the flow of exploration spending outside Australia. 5 LNG TRAIN 4 UPDATE Progress details on the 24 KAMBALDA A$1.6 billion gas A look at why the nickel town of Kambalda is booming again. processing project on the Burrup Peninsula in 36 RESOURCES MAP northwest Western Australia. A subscription form appears on page 35 Front cover: On board the drill rig during Prospect ISSN 1037-4590 the discovery of Santos’ Western Australian Prospect magazine is published quarterly by the Western Australian Government’s Department of Industry and Mutineer/Exeter oilfield off Resources (DoIR) and Ray Burns Media. the northwest coast of Editorial management: John Terrell, DoIR Communications & Marketing Division. Tel: (08) 9327 5555 • Fax: (08) 9327 5500. Western Australia. Advertising management: Ray Burns Media, PO Box 1230, South Perth Westerm Australia 6951 Tel: (08) 9474 3288 • Mobile: 0408 474 328 • Email: [email protected] Prospect has been compiled in good faith by the Department of Industry and Resources from information and data gathered in the course of the magazine’s production. Opinions expressed in Prospect are those of the authors and not necessarily those of the Department of Industry and Resources. No person or organisation should act on the basis of any matter contained in this publication without considering, and if necessary taking, Department of appropriate professional advice from other sources.