AUSTRALIA — Woodside Energy Group Ltd and the Australian Conservation Foundation (ACF) have reached an agreement to dismiss the ACF’s legal challenge to a primary environmental approval for Woodside’s Scarborough Energy Project.
This decision effectively removes the final legal obstacle to the $16 billion venture, allowing offshore work to progress as planned.
The Scarborough Energy Project, which includes the Scarborough Joint Venture, Pluto Train 2 Joint Venture, and modifications to Pluto Train 1, was 67 per cent complete as of June 2024.
Woodside remains on track to deliver its first LNG cargo in 2026.
The project is expected to generate over $50 billion in direct and indirect taxes for Australia’s economy, create more than 3,000 jobs during construction, and sustain approximately 600 jobs on average during operations.
Woodside CEO Meg O’Neill emphasised the project’s environmental credentials, stating: “The Scarborough reservoir contains less than 0.1 per cent carbon dioxide and combined with processing design efficiencies will be one of the lowest carbon intensity sources of LNG delivered into north Asian markets.”
The project has undergone rigorous environmental assessments by various regulatory bodies, including the National Offshore Petroleum Safety and Environmental Management Authority and the Commonwealth Department of Climate Change, Energy, the Environment and Water.
The ACF, represented by the Environmental Defenders Office, initiated Federal Court proceedings in June 2022, seeking an injunction to halt offshore activities for the Scarborough project.
Both parties have now agreed to seek court orders to dismiss these proceedings.
O’Neill welcomed the agreement, stating: “Litigation against energy projects like Scarborough is an ineffective way to pursue solutions to global climate and energy challenges. Such approaches create needless uncertainty for businesses, communities and the people who depend on the energy these projects produce.”
The Scarborough Energy Project is positioned to play a crucial role in Western Australia’s energy security while supplying energy to Asian economies as they transition towards decarbonisation.
O’Neill noted that the project aligns with the energy policies of both the Australian and Western Australian governments.
As the legal challenge concludes, Woodside can now focus on completing the Scarborough Energy Project, which promises significant economic benefits and aims to provide a lower-carbon energy source for the Asia-Pacific region.
