November 24, 2021
Scarborough FID a major boost for WA gas industry
The recent announcement that a final investment decision (FID) has been made on Woodside and BHP’s Scarborough gas project highlights the strong outlook for the Australian gas industry.
Indeed, the move means that the Australian oil and gas industry has now announced an incredible $27 billion of investment in 2021, buoyed by growing global demand for a reliable, affordable, and cleaner source of energy both domestically and overseas.
The Scarborough FID not only represents continued government and investor confidence in the Australian gas industry but is also a boon for local employment, set to deliver a peak of 3,200 jobs during its initial four-year construction period and around 600 operational jobs.
Scarborough will provide a reliable, affordable source of energy that will bring a great deal of investment to the Pilbara region, including supporting local businesses and manufacturers.
In addition, the project will also deliver significant long-term benefits to the Australian economy, generating over $19 billion in total taxation payments and boosting Australia’s gross domestic product by $125 billion to 2063, 98% of which will come from WA.
It is great news for Woodside, BHP, WA, the national gas industry, and the Asia-Pacific region, where demand continues to grow for cleaner alternatives to coal-fired energy.
WA has already proven itself as an LNG powerhouse, providing more than half of Australia’s total LNG exports, and the Scarborough FID ensures this is set to continue for many decades to come.