Woodside Energy Group Ltd. and the Australian Conservation Foundation agreed to dismiss the latter’s challenge to the development of the $12.5 billion Scarborough natural gas field off Western Australia.
The parties agreed to seek orders from the Federal Court to dismiss the proceedings, Woodside said in a filing to the Australian Stock Exchange.
The project now has all primary environmental approvals in place, and offshore work is “progressing well,” the company said.
The announcement comes as scrutiny of fossil fuel developments in Australia increases.
The nation is among the biggest exporters of both coal and liquefied natural gas and its massive LNG plants are some of the biggest emitters, threatening a target to reach net zero by 2050.
The ACF had sought to challenge Woodside’s regulatory approvals on the grounds that Scarborough would contribute to meaningful climate change, impacting the Great Barrier Reef — about 5,000 kilometers (3,100 miles) east of the gas fields.
“Late last week it became apparent that the case was unlikely to succeed,” the ACF said in a statement. “Litigation is expensive and risky, and communities often come up against opponents with far greater resources.”
Woodside has increased its bets on the future of natural gas, citing its lower emissions relative to coal. It bought a troubled US LNG export developer last month, and has brought Japanese partners into Scarborough, despite facing a backlash on its climate policy from some investors.
Scarborough was two-thirds complete at the end of June and is on track to deliver its first cargo in 2026, Woodside said.
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