Chevron Australia announced today that it and joint venture partners Exxon Mobil and Shell had approved final investment in the project.
The Gorgon gas fields, off the north west coast of WA, contain about 40 trillion cubic feet of liquified natural gas (LNG), the nation's largest known gas resource.
The project is expected to boost Australian exports for decades, with longterm supply deals already signed with companies in China, India, Japan and South Korea worth billions.
All three companies decided to proceed with the project after production licenses were granted and development approval was given by the WA Government.
"The project will create about 10,000 jobs during the peak construction phase with more than 3500 direct and indirect jobs sustained throughout the life of the project,'' WA Premier Colin Barnett said.
Prime Minister Kevin Rudd welcomed the decision by the Gorgon joint venture partners to develop the project, which is expected to generate $300 billion in export earnings.
Mr Rudd said the development would have spin-offs for jobs, export earnings and global greenhouse gas abatement.
"The Gorgon investment will be Australia's largest-ever resources development and is expected to generate $300 billion in Australian export earnings,'' he said.
The project's first phase of development is estimated to cost about $43 billion.
First work will begin immediately on Barrow Island, and first gas is expected to be delivered in 2014.
Chevron Australia managing director Roy Krzywosinski said the project would provide an economic boost over the next 40 years.
"We anticipate $33 billion will be spent on Australian goods and services with flow-on effects cascading through the Western Australian economy,'' he said.
Chevron holds a 50 per cent stake in the project and will be its operator.
ExxonMobil and Shell each hold 25 per cent interests.
Chamber of Commerce and Industry (CCI) of Western Australia welcomed the final investment decision by the joint venture partners.
Chief executive James Pearson said the State Government now faced the challenge of ensuring the full economic benefits are realised through investing in infrastructure.
"CCI believes it would be appropriate to direct a greater share of the federal government's $42 billion stimulus package and the Infrastructure Australia fund to much needed wealth creating, nation building projects in WA,'' he said.
"Doing so will not only boost the local economy in the short term, but benefit future generations, by ensuring we have the infrastructure that we need."
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