Australia approves US$1.1b Timor Sea methanol project

Australia approves US$1.1b Timor Sea methanol project

The Australian government has given final approval for a A$2 billion (US$1.1 billion) methanol project in the Timor Sea off northern Australia, developers announced on Monday in Sydney.

Methanol Australia said Environment Minister David Kemp had granted approval for the Tassie Shoal Methanol Project, which when complete will produce 10,000 tons of methanol daily for export to Asia.

The annual export sales revenue, at current methanol prices, should top A$1.2 billion.

The project plans to produce methanol using gas from the nearby Evans Shoal field owned by Shell, Santos and Osaka Gas.

The first stage of the plant is due to be commissioned in late 2006, with the second expected in 2011.

Methanol Australia said it expected to begin engineering and design studies in May 2003 and would soon start negotiating commercial agreements.

Engineering group Fluor Australia was appointed project manager, while Sumitomo Mitsui Banking Corp. was named financial adviser.

Methanol Australia said the Tassie Shoal Methanol Project was the first world scale commercial methanol production project to receive such environmental approval in Australia. -- AFP