PERTH (miningweekly.com) – Federal Resources Minister Keith Pitt has thrown his support behind the development of further liquefied natural gas (LNG) projects, in Western Australia, saying they would be needed to support increased global demand.

“Global gas demand is forecast to grow by 1.5% on average per year out to 2025, providing incentive to ensure our large gasfields like Scarborough and Browse are developed as soon as possible.

“Australia’s large upcoming offshore gas developments such as the Scarborough, Browse and the Barossa projects, will create thousands of new high-wage jobs, including nearly 5 000 jobs during construction and more than 1 000 operational jobs,” Pitt said this week.

The Scarborough gasfield, being developed by ASX-listed Woodside, is estimated to contain a contingent resource of some 11.1-trillion cubic feet.

Fellow-listed Santos took a final investment decision on its $3.6-billion Barossa gas and condensate project in March this year, also kick-starting a $600-million investment in the Darwin LNG life extension and pipeline tie-in projects, which will extend the facility life for around 20 years. The Santos-operated Darwin LNG plant has the capacity to produce approximately 3.7-million tonnes of LNG per annum.

“Australia is ready to capitalise on the expected growth in global gas demand driven by Asian economies. The use of carbon capture and storage (CCS) is a critical enabler of emerging energy technologies,” Pitt said this week.

“I am pleased to note that Tuesday’s Budget committed A$263.7-million over 10 years to fund the carbon capture utilisation and storage (CCUS) Hubs and Technology Program, building on the A$50-million previously announced in the CCUS Development Fund.”

Pitt said the Yara Pilbara plant was a great example of using gas to add value to valuable commodities for farmers and the resources industry.

The Yara plant uses natural gas in the production of fertiliser ammonia, and the further processing into ammonium nitrate for use in the mining industry.

“The Yara Pilbara facilities are a great example of downstream uses of natural gas, with the company exporting fertiliser to help grow crops and feed the world from the nearby Port of Dampier,” Pitt said.