Onslow to benefit from new domestic gas plant

• Macedon JV partners to invest in local community as part of project terms

• Project to be fourth gas plant dedicated to supplying WA domestic market

Onslow will benefit from an additional $5million investment in community infrastructure as part of a State Government agreement covering the $1.5billion Macedon domestic gas project.

Premier and State Development Minister Colin Barnett said the Government had finalised an agreement with the Macedon joint venture partners - BHP Billiton Petroleum (Australia) Pty Ltd and Apache PVG Pty Ltd - covering establishment of a domestic gas plant in the Ashburton North Strategic Industrial Area.

"The Macedon project will supply gas to the domestic market, adding to the State's natural gas capacity for homes and industry across Western Australia," Mr Barnett said.

"As a foundation project for Ashburton North, Macedon is critical to the success of the hydrocarbon precinct and port.

"Along with the Wheatstone LNG project, it is part of a new future for Onslow as a regional centre and Western Australia as a world-class energy economy."

The 25-year agreement with the Macedon JV formalises key commitments made when the State Government provided land for the project.

These included funding for social infrastructure improvements in Onslow and use of WA-based workers and services wherever commercially practicable.

Construction of the gas plant, which commenced in 2011, is well under way and expected to start production in 2013.

      Fact File

• Project to bring gas from 110km offshore and supply gas equivalent to about 220 Terajoules a day to Dampier to Bunbury natural gas pipeline

• BHP Billiton's construction workforce expected to peak at 700

• Up to 25 people will be employed to operate the plant

• WA-based companies have been awarded contracts worth more than 55% of total project expenditure

Premier's office - 6552 5000