Woodside (ASX:WDS) said it has been notified that the Australian Conservation Foundation (ACF) has started proceedings in the Federal Court of Australia in relation to the environmental assessment of the Scarborough liquefied natural gas (LNG) project in Western Australia.
The ACF is seeking an injunction to restrain offshore project activities relating to the development of the Scarborough gas field. The ACF claims that the project’s contribution to global warming would harm the Great Barrier Reef.
ACF chief executive Kelly O’Shanassy said evidence presented to the court would show Scarborough’s emissions would significantly impact the World Heritage-listed Great Barrier Reef in Australia.
Woodside said in a statement that “the Scarborough project has been the subject of rigorous environmental assessments by a range of regulators including the National Offshore Petroleum Safety and Environmental Management Authority, the Commonwealth Department of Agriculture, Water and the Environment and the Western Australian Environmental Protection Authority.”
Woodside CEO Meg O’Neill said “the Scarborough project is underway and proceeding to schedule after receiving all primary environmental approvals.”
“The project will deliver significant local and national benefits in the form of employment, tax revenue and reliable gas supply in the energy transition for decades to come.”
“Woodside will vigorously defend its position in these proceedings”, she said.
“This is going to be an interesting case for the courts are being asked to determine causation, between the likely emissions from the project and harm to the Great Barrier Reef,” noted Ganesh Sahathevan, a Sydney-based analyst.
Woodside made final investment decisions in November 2021 to approve the US$12.0 billion (100%, $6.9 billion Woodside share) Scarborough and Pluto Train 2 developments. First LNG cargo is targeted for 2026.
The Scarborough field is located approximately 375 km off the coast of Western Australia and is estimated to contain 11.1 trillion cubic feet (100%) of dry gas. Development of Scarborough will include the installation of a floating production unit (FPU) with eight wells drilled in the initial phase and thirteen wells drilled over the life of the Scarborough field. The gas will be transported to Pluto LNG complex for processing through a new approximately 430 km trunkline.
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