The move will anger the Kimberley Land Council,  which wants to continue negotiations for an indigenous land use agreement for the land at James Price Point, north of Broome.

It is likely to provoke demonstrations at the site.

After weeks of threatening compulsory acquisition for the massive $30 billion Woodside Petroleum-led project, Mr Barnett  today officially announced the government's intention to proceed.

"Economic independence and real opportunity is the best way towards self-determination for Aboriginal people and goes a long way towards reconciliation,'' Mr Barnett said in a statement.

"In developing this resource, the Government will not compromise on environmental standards, good planning, high standards of safety or benefits to the Aboriginal community.''

He cited his frustrations over delays on an indigenous land use agreement and ongoing internal divisions among Aboriginal claimant groups.

Mr Barnett said it was in the state's wider economic interest - and in the interest of job and wealth creation for the local Aboriginal community - that he was acting to compulsorily acquire the land.

He said the government would still prefer to sign an ILUA and urged native title claimants to resolve the issues within their groups.

"If that is not possible, we will be aiming to achieve a negotiated outcome that is consistent with the Heads of Agreement signed by the Kimberley Land Council on behalf of the Goolarabooloo Jabirr Jabirr claimants in April 2009,'' Mr Barnett said.

The heads of agreement included recognition of the claimants as traditional owners of the affected land and provide an area of land, equivalent to that required for the precinct, to the owners under freehold title.

Yesterday  KLC chief executive officer Wayne Bergmann accused the premier of bullying Aboriginal people with threats to compulsorily acquire the land.

Mr Bergmann said negotiation by consent was the way to go and compulsory acquisition would only dampen support among Aboriginal people for the gas hub and threaten the project.

In April 2009, the KLC signed a heads of agreement with Woodside and the state and federal governments approving the gas project and $1.5 billion in benefits to flow to indigenous communities over 30 years.

But the KLC suspended negotiations after Aboriginal law boss Joseph Roe challenged its right to negotiate on behalf of native title claimants.

Last month the Federal Court rejected Mr Roe's application but this week he filed documents seeking leave to appeal the dismissal of his claim against the KLC.

Aboriginal academic Mick Dodson has said compulsory acquisition amounted to "theft'' of land and should never be contemplated at a political level.

Mr Barnett said the government's decision was necessary as the KLC and native title claimants had been unable to finalise an Indigenous Land Use Agreement (ILUA) with the government and Woodside within the required timeframe.

The deadline to finalise an agreement was June 30 and Mr Barnett said the government would not extend it for a fourth time.

He said only land required for the gas hub precinct would be affected and the acquisition would follow the requirements of all appropriate legislation.

Mr Barnett stressed the gas hub was critical for the development of not only WA, but the indigenous community.

The acquisition also included stronger environmental and heritage protection such as creating new conservation reserves on the Dampier Peninsula.

"This is an extraordinarily big deal in every respect. I am not referring to the investment or the amount of dollars expended,'' Mr Barnett said.

"This is a project that has the potential to bring enormous benefits to Western Australia and especially to the Kimberley.

"The Kimberley has high levels of unemployment, limited work opportunities and issues of education, health and housing.''

Woodside Petroleum Ltd says its Browse liquefied natural gas (LNG) development is on track to complete a $1.25 billion work program by mid-2012.

"We remain committed to delivering the benefits we have promised during our discussions with the Kimberley Land Council and Native Title claimants,'' Perth-based Woodside said.