Chevron Australia announced Monday its joint venture partners ExxonMobil and Shell had approved final investment in the massive Gorgon liquefied natural gas project in Western Australia (WA).
The Gorgon gas fields, off the northwest coast of WA, contain about 40 trillion cubic feet of liquefied natural gas, the nation's largest known gas resource.
Australian Prime Minister Kevin Rudd has welcomed the decision by the Gorgon joint venture partners to develop the project, saying 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 Australian dollars (257 billion U.S. dollars) in Australian export earnings," he said in a statement.
"The project is expected to support 10,000 direct and indirect jobs in the peak construction phase, as well as 3,500 direct and indirect jobs throughout the life of the project."
Rudd noted the project was an important development in tackling climate change.
"The environmental benefits of the Gorgon project will, however, be more far-reaching.
"Every ton of CO2 generated producing LNG in Australia reduces four tons of CO2 in Japan, and nine tons of CO2 in China, when used in place of coal for electricity generation," he said.