Giant resource company BHP Billiton Ltd announced on Friday that it would commence its $US1.5 billion ($A1.57 billion) joint development of the Macedon gas field off the coast of Exmouth in Western Australia with Apache Northwest.

The company said that the project site's estimated reserves of up to 750 billion cubic feet of gas should start yielding produce by 2013 where four offshore production wells were projected to pump supplies through a wet gas pipeline into the Ashburton North onshore gas treatment plant, also set to be constructed during the development stage of the venture.

BHP Petroleum chief executive J Michael Yeager also said that once operational, the Macedon gas project would be able to ensure uninterrupted flow of gas supplies to the Bunbury Naturals Gas Pipeline that would mostly serve the domestic needs of WA's gas market.

Mr Yeager stressed that the development project is set to further secure the short and medium term domestic gas requirements of Western Australia as he noted that "it will be the first development in the important Ashburton North area and will make a strong contribution to the overall growth of our Petroleum operations in WA."

BHP Billiton said that up to 71.43 percent or $US1.05 billion cost of the project would be shouldered by the company while the rest of the expenditure balance would be sourced from additional funding by Apache Northwest.

In a related news for the company, BHP Billiton also revealed that the US Federal Trade Commission and the Antitrust Division of the Department of Justice have granted the company's request for an early termination of the mandatory waiting period on its takeover bid for Canada's Potash Corporation of Saskatchewan Inc.

The company said that the ruling would be effective immediately as it expressed confidence that the latest development should eventually lead to government regulators approval from both US and Canada for its proposal to acquire all outstanding Potash Corp shares at $US130 per share.