Western Australia's Environmental Protection Agency today provided a dent to the aspirations of the Gorgon liquefied natural gas project partners off WA's Pilbara coast with confirmation of its decision to block the $11 billion project.
Western Australia's Environmental Protection Agency today provided a dent to the aspirations of the Gorgon liquefied natural gas project partners off WA's Pilbara coast with confirmation of its decision to block the $11 billion project.
However, the EPA's recommendations, based on fears over Barrow Island's fragile ecology, does not represent the end of the development.
EPA chairman Dr Wally Cox admitted that the joint venture partners, Chevron (the project operator), ExxonMobil, and Shell, had done a lot of work on flora and fauna issues, but in its present form Gorgon's proposal was unacceptable.
Gorgon LNG general manager Colin Beckett said that Gorgon was a world-class gas field and that the joint venture partners were confident of appealing the decision.
The EPA recommendations on the Gorgon proposal are now subject to a two-week appeals period.
Environment Minister Mark McGowan today said there was a very clear and definite process to be followed, and that he would not comment on the recommendations until the process had been worked through.
"The public comment period on this decision begins today and ends at close of business on Tuesday, June 20," the minister said.
The Minister will make a final decision on the Gorgon proposal once he had considered the EPA's report and any subsequent report from the Appeals Convenor.
Gorgon is one of Australia's biggest export projects and is scheduled to provide up to 6,000 jobs and exports of up to $1.2 billion.
In September 2003 the WA government provided in-principle agreement to Gorgon for restricted access to Barrow Island subject to a formal environmental impact assessment, and development of standards for acceptable management of conservation risk.
Dr Cox said that joint venture had not been able to demonstrate that impacts from dredging, the introduction of non-indigenous species and the potential loss of fauna could be reduced to acceptable levels.
The Chamber of Commerce and Industry of WA belives the huge economic and social benefits of the Gorgon project require that the government approve the project as soon as possible.
CCI chief executive John Langoulant said that the proponents had undertaken and completed a huge body of advance work addressing the environmental concerns, and having given the developers the confidence to take the project forward, it was now time for the government to give them certainty.
While the importance of the environment must be acknowledged, the CCI expressed confidence in the ability and the track record of the Gorgon team to manage the issues.
The EPA's Gorgon decision comes after it placed stringent conditions on Alcoa's $1.5 billion Wagerup alumina refinery expansion earlier this year, and places a potential restriction on the growth of the state's booming resources sector.
COPIES OF MEDIA RELEASES ON THE ISSUE APPEAR BELOW.
Process to be followed in Gorgon decision
Environment Minister Mark McGowan today said the advice and recommendations from the Environmental Protection Authority on the Gorgon proposal would be subject to a two-week appeals period.
Mr McGowan said he would not comment on the recommendations until the process had been worked through.
"There is a very clear and definite process to be followed with these types of proposal and it is important that the process is respected," he said.
"The public comment period on this decision begins today and ends at close of business on Tuesday, June 20."
The Minister said he would make a final decision on the Gorgon proposal once he had considered the EPA's advice and recommendations and any consequent report from the Appeals Convenor.
EPA Bulletin 1221 - Gorgon Proposal on Barrow Island Nature Reserve
The Environmental Protection Authority has provided advice and recommendations to the Minister for the Environment; Racing and Gaming on Chevron Australia Pty Ltd's proposal, as operator for the Gorgon Joint Venturers, to extract, pipe, liquefy and export 10 million tonnes per annum of natural gas using facilities offshore and on Barrow Island, Western Australia.
In September 2003 the Western Australian Government provided in-principle agreement to the joint venturers for restricted access to Barrow Island nature reserve subject to a number of conditions, including:
- Formal environmental impact assessment demonstrating that environmental factors can be managed without unacceptable impact on conservation values; and
- Development of standards for acceptable management of risk to conservation values and a clear demonstration that they can be met with a very high level of confidence.
EPA Chairman Dr Wally Cox said that work done by the Joint Venturers as part of the Environmental Review and Management Programme had further highlighted the terrestrial and marine conservation values of Barrow Island and the adjacent waters.
"Flatback turtles in particular would be put at risk from the proposal with two of the most important nesting beaches located adjacent to the proposed LNG processing plant site and the materials off-loading facility," Dr Cox said.
"There is very little science available on the life-cycle, behaviour and feeding habits of Flatback turtles and as a consequence it is not possible at this time to identify management measures that would ensure ongoing survival of this Pilbara Flatback turtle population."
Dr Cox also said that the Proponent had not been able to demonstrate that risk could be reduced to satisfactory levels in the areas of:
- Impacts on the marine ecosystem from dredging;
- The introduction of non-indigenous species; and,
- Potential loss of subterranean and short range endemic invertebrate fauna species.
"As a result, the proposal in its present form cannot meet the EPA's environmental objectives and is considered environmentally unacceptable," Dr Cox said.
The EPA's report is subject to appeal until close of business Tuesday 20 June 2006 and is available at www.epa.wa.gov.au.
Appeals are considered by the independent Appeals Convenor (9220 5072). The Convenor prepares a report for the Minister for Environment, Racing and Gaming on any appeals that may be received. The Minister then takes into consideration both the EPA's and the Convenor's report when making his final decision on any proposal.
The EPA is a five person board providing independent overarching environmental advice to the Minister for the Environment; Racing and Gaming through the preparation of environmental protection policies and the assessment of development proposals and management plans, as well as providing public statements about matters of environmental importance.
The EPA is supported by the EPA Service Unit. This Unit sits administratively within the Department of Environment but for EPA matters is under the control of the EPA
Balance overwhelmingly in favour of Gorgon project go-ahead
Statement by CCI Chief Executive John Langoulant
The huge economic and social benefits of the Gorgon project require that the State Government gives the green light to the $11 billion project as soon as possible.
While the EPA has argued against the project in its report released today, the proponents have undertaken and completed a huge body of advance work addressing the environmental concerns.
It is approaching three years since the Government declared its in-principle support for the project. Having given the developers the confidence to take the project forward, it is now time for the Government to give them certainty.
The Gorgon field off WA's north-west coast is a world-class gas resource able to provide buyer nations with a clean and efficient energy resource well into the future.
A go-ahead for the project is pivotal for Western Australia's future prospects as an international clean-energy supplier and a focus for resource investment.
The major partner in the Gorgon project, Chevron, has demonstrated over many years as the operating oil producer on Barrow Island, that it is capable of caring for the island and its surrounds.
While the importance of the environment must be acknowledged, CCI has confidence in the ability and the track record of the Gorgon team to manage the issues.
The company has conducted high quality work in this area since the September 2003 preliminary approval, culminating in a comprehensive environmental management programme to accompany the development.
By any measure, the balance is overwhelmingly in favour of clearing this vital project for implementation as a matter of priority and urgency.
APPEA welcomes bi-partisan support for Gorgon
Australia's peak industry association representing the upstream gas industry, the Australian Petroleum Production and Exploration Association (APPEA), has welcomed the bi-partisan support given this afternoon by the WA Premier, Alan Carpenter, and the Leader of the Opposition, Paul Omodei, to the Gorgon project.
This follows today's Advisory Bulletin by the WA Environmental Protection Authority recommending against the development of the Gorgon project on Barrow Island, off the WA coast.
"The Gorgon partners have worked extremely hard to address environmental concerns and have done so diligently, thoroughly and involving the world's most renowned environmental experts," APPEA's Chief Executive, Belinda Robinson, said this afternoon.
"It also involves the world's first commercial carbon sequestration project. It's hard to imagine what more could be done," Ms Robinson said.
"As the WA Premier mentioned this morning, gas has a major role to play as Australia and the world face the dual challenges of long-term energy security and reducing greenhouse gas emissions.
"It is critically important that the Australian industry's international LNG customers retain confidence in Australia's ability to be a reliable and consistent supplier of gas to world markets. Australia is good at producing and exporting LNG - and has massive potential."
Ms Robinson said it was Australia's enviable reputation that would help secure the sales that will shore up Australia as one of the top five LNG suppliers in the world.
"The Premier observed today that natural gas represents an abundant source of low greenhouse gas emissions energy for Australia's future," she said.
"LNG also has massive potential in assisting a world that is struggling with the greenhouse problem. It is a bright light for near-term, cost effective global action and should be strongly and widely supported by all Governments and the Australian community."
Ms Robinson said Australia's upstream petroleum sector was proud of its track record of first class environmental assessment and protection.
"This nation's upstream petroleum sector has the skills and experience to operate in sensitive environments and APPEA notes that Chevron has won seven international and Australian awards for environmental excellence over the past 40 years - a period in which it has produced 300 million barrels of oil from the Barrow Island fields.
"The joint venture responded individually to 1100 questions from the public, environment groups, government agencies and other stakeholders, and enhanced its development and operating proposal to accommodate views expressed during the public consultation process.
"APPEA looks forward to seeing the appropriate regulatory processes, including any appeals against the EPA's decision, progress as quickly and efficiently as possible" Ms Robinson said.
"The Gorgon project is a world class gas resource of more than 40 trillion cubic feet, and its development has the potential to deliver 6,000 jobs, $2.5 billion in annual export income, and more than $17 billion in government taxes and royalties over its 60 year life," Ms Robinson said.
