The Pipeline, the WA Economy and Natural Gas

Perth City

 

WA’s strong and diverse resource industry has positioned the State front and centre in the economic landscape of Australia. Both natural gas and the pipeline play an important role in this sector, providing the energy many major mining and resources customers need to power their operations. Manufacturing and minerals processing industries are also underpinned by energy produced from natural gas.

In fact, WA is the most energy and gas-dependent economy in Australia with natural gas supplying more than half of WA’s primary energy needs. Natural gas also fuels at least 60 per cent of the State’s electricity generation.

With growth expected to continue in WA, it is inevitable that demand for energy will too. As a result, a reliable natural gas supply and a pipeline that is able to expand to meet this demand are critical for continued economic growth and stability in WA.

Gas Flame

Fast Facts about WA’s resources

(information courtesy of The WA Department of Mines and Petroleum)

  • Over the past ten years, WA’s mineral and petroleum industry has achieved an average growth rate of 15 per cent.
  • In 2010, the State’s minerals and petroleum industries delivered almost $3.9 billion in royalties to the State Government.
  • In 2010, WA remained as the nation’s foremost exporter contributing a dominant 44 per cent to Australian merchandise exports which totalled $230 billion.
  • In Western Australia as of 1/3/2011 there is an estimated $106bn of major projects "committed or under construction", with a further $115bn of projects "planned".

For more information about the mining and resources industry in WA, please visit the Chamber of Minerals and Energy of Western Australia at www.cmewa.com or the WA Department of Mines and Petroleum www.dmp.wa.gov.au.

Domestic natural gas use

Natural gas also plays an important role in the everyday lives of many Western Australians.

The natural gas that burns on stoves, in heaters and hot water systems in homes and businesses throughout the south-west of the State has travelled more than 1400 kilometres from the northern reaches of WA. The gas is primarily fed into the WA Gas Distribution System via the pipeline.

Natural gas also fuels at least 60 per cent of the State’s electricity generation, keeping lights, televisions, air conditioners and computers on in homes and businesses.

Pipes on Truck

Natural gas, a cleaner fuel

Natural Gas as the name suggests is a naturally occurring gas that is found deep underground off the North West Shelf of Australia. It is extracted via wells drilled into the ground and is ready for use in homes and businesses following processing. Natural Gas consists mainly of methane, the most greenhouse friendly fossil fuel. It is a non-toxic and odourless gas. Natural Gas is lighter than air and easily disperses in the event of a gas leak. An odorant is also added for added safety.

Natural gas produces around 45% less CO2 than coal. Gas-fired cogeneration and combined cycle gas turbines are the most greenhouse efficient forms of non-renewable power generation available today.

Natural gas is an essential part of WA’s ability to meet future greenhouse reduction targets while maintaining growth and employment.

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