Australian Petroleum Production and Exploration Association expects three projects to inject $22b into Pilbara

More than $22 billion is expected to be invested into the Pilbara this year from the oil and gas industry on the back of three major projects. The Australian Petroleum Production and Exploration Association on Wednesday revealed its Pilbara outlook for the year. The expected increase is from work by FID Woodside and BHP on the $16 billion Scarborough and Pluto Train 2 project, as well as Chevron announcing a $6 billion investment in the Jansz-Io compression project at Gorgon off the Pilbara coast. The compression project is part of the original development plan for the $US54b Gorgon project and aimed at maintaining gas production rates It will involve the construction and installation of a 27,000-tonne unmanned floating field control platform, about 6500 tonnes of subsea compression infrastructure and a 135km submarine power cable linked to Barrow Island. APPEA WA director Claire Wilkinson said continued investment in the Pilbara this year would help create jobs and a cleaner energy future. Ms Wilkinson said the Pilbara led the way nationally in new project investment, with most oil and gas investments announced last year to be made in the region. “Last year was a strong year for the natural gas industry, particularly in the Pilbara thanks to its significant resources and the ongoing demand for gas,” she said. “The strength of the investment pipeline underscores the demand and long-term role of natural gas in powering our homes, hospitals, mines and businesses. “These major projects reinforce the Pilbara’s position as the nation’s economic powerhouse.” It comes as a global energy report released on January 11 placed Australia’s oil and gas industry alongside the Middle East as the likely “standout” region globally for development growth this year. The report released by independent global research firm Rystad Energy said Australia was likely to see a 33 per cent jump in investments.