The Western Australian Government has signed the Natural Gas (Canning Basin Joint Venture) Agreement with JV partners Buru Energy and Mitsubishi Corporation.

 

The State Government has announced it will also legislate to facilitate the exploration of natural gas in the remote Canning Basin, the development of a gas pipeline to the Pibara and ensure that Western Australian consumers have first use of any gas discovered by the venture.

 

Premier Colin Barnett said the area showed an enormous potential for antural gas after the US Energy Information Administration estimated the area contained as much as 229 trillion cubic feet in unconventional gas reserves.

 

“This agreement will help secure Western Australia’s energy supplies for the future,” the Premier said.

 

“It ensures gas discoveries are rapidly brought into production, and that gas is delivered to the State’s domestic gas network, before any is exported.”

 

Mr Barnett said natural gas provided about 50 per cent of the State’s domestic electricity generation, and contributed to the production of key resource exports including iron ore, alumina, base metals and gold.

 

“Future development of energy-intensive magnetite production in the Pilbara and the Mid-West and other value-adding and advanced manufacturing opportunities in the State, will benefit considerably from an expansion of WA’s domestic gas supply sources,” he said.

 

“Natural gas is also an ideal partner for the State’s growing renewable energy production as a back-up in times of adverse weather conditions and peak demand.”

 

The Premier said that under the agreement, the partners were still required to obtain relevant State and Commonwealth environmental, safety, indigenous heritage and Native Title approvals for their exploration, development and infrastructure proposals.