August 9th, 2012

James Price Point: An economic analysis of the Browse LNG project

The Australian Institute

Matt Grudnoff

The Western Australian government together with Woodside proposes to build the Browse LNG precinct on James Price Point in the Kimberley region of Western Australia (WA). The evidence to support the state government’s claim that the precinct will deliver economic benefits is virtually non-existent. Indeed, a close reading of the scant evidence that is available shows that the development will:

• Have a significant adverse impact on the WA state budget;
• Rely on up to 97 per cent fly-in fly-out (FIFO) workers and employ very few local workers;
• Lead to a reduction in employment in tourism (the region’s largest employer); and,
• Significantly drive up the cost of living for the vast majority of local residents who will not be employed, directly or indirectly, by the new development.

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