$30 billion offshore energy undertaking at stake of being thwarted as endangered sea snake slithers to mega gas project

Environment

A dusky sea snake, described as a species only found at Scott Reef and surrounding waters, has been put on the endangered list by the Australian federal government. While some fear that this move will jeopardize a project, led by Australia’s energy giant Woodside and valued at over $30 billion, to develop what is said to be the country’s largest untapped conventional gas resource, others openly seek to pull the plug on the project and shoot down attempts to bring it to life.

Browse to North-West Shelf project development concept; Source: Woodside

Australia’s Department of Climate Change, Energy, the Environment and Water (DCCEEW) declared the dusky sea snake an endangered species under the Environment Protection and Biodiversity Conservation Act. The areas where this animal is found have been identified to include the Browse Basin, where Woodside is working on developing a gas project located beneath the extraordinary Scott Reef off the coast of the Kimberley in Western Australia to bolster energy security, given the predicted gas shortages unless new power is added to meet demand.

The Conservation Council of WA (CCWA), Western Australia’s foremost not-for-profit, non-government conservation and environment organization, highlights the conservation advice informing the decision, provided to the Environment Minister by the DCCEEW, recommends the government “urgently review all activities for the fossil fuel industry across the Browse Basin,” spotlighting its “known and potential impacts.”

Based on the conservation advice, these threats include “a high risk of blowout releasing vast quantities of oil,” “excessive marine noise” which is “almost certain,” “pollution from heavy metals and other toxins” and “disturbance of the sea floor” which “can kill corals that provide habitat for the dusky sea snakes.” In addition, it states that “the stronghold for the dusky sea snake is the Scott Reef complex,” which sits above the Browse gas field that Woodside proposes to exploit, and which is also deemed to be crucial for the survival of endangered blue whales, green sea turtles, and a wide range of other marine life.

The Browse joint venture (BJV) selected the Browse to North West Shelf (NWS) project development concept in September 2018 to progress into the concept definition phase. The proposed development concept includes two floating production storage and offloading (FPSO) units delivering 11.4 mtpa of LNG/LPG and domestic gas; and an approximately 900 km pipeline to the existing NWS project infrastructure.

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As the operator, the Australian giant, on behalf of the BJV, is proposing to develop the Brecknock, Calliance, and Torosa fields approximately 425 km north of Broome in the offshore Browse Basin. The CCWA notes that Woodside proposes to drill up to 50 wells around the Scott Reef system and pipe Browse gas more than 900 km along the ocean floor to the North West Shelf/Karratha Gas Plant at the Burrup Hub to be processed for export.

Jess Beckerling, Executive Director of the Conservation Council of WA, commented: “Scott Reef is a pristine and fragile marine ecosystem, teeming with life that depends on it for survival. Woodside’s Browse gas proposal involves drilling up to 50 gas wells around this precious coral reef. Last month, it was revealed that the WA EPA has deemed Woodside’s Browse project unacceptable due to multiple serious environmental risks to endangered green turtles, blue whales and to Scott Reef itself.

“The federal government has now declared the dusky sea snake, which is only found around Scott Reef, to be endangered. The Department’s Conservation Advice identifies gas extraction in the Browse Basin as “exacerbating” impacts to the dusky sea snake. The government must heed the Federal Department’s call for an urgent review of potential impacts from Woodside’s plan.”

Browse CCS concept; Source: Woodside

Moreover, a carbon capture and storage (CCS) solution to abate Browse reservoir carbon dioxide (CO2) has been picked by the BJV to be feasible and the CCS infrastructure has subsequently been incorporated into the development concept

Roger Cook, Premier of Western Australia, recently said: “Browse would be an important part of not only WA’s gas supply but making sure we can assist our south-east Asian and north Asian partners to decarbonise their economies through the ongoing supply of gas.”

The CCWA has found Woodside’s Browse gas proposal to be unacceptable due to a wide range of serious and unmanageable risks to the environment including the endangered pygmy blue whale and a population of green sea turtles who rely on Scott Reef for their sole nesting habitat.

The Environmental Protection Agency (EPA) reached its preliminary finding with a wide range of major concerns about environment, nature, and pollution impacts, as outlined in a letter the EPA sent to Woodside Energy in February this year.

This follows Freedom of Information documents, which revealed that Woodside’s application to amend an existing application to add offshore carbon dumping was rejected by the Department of Climate Change, Energy, the Environment and Water in August 2023. The Australian firm published the final environmental impact statement (EIS) for the proposed Browse to NWS project in September 2022.

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“After many years of trying, Woodside has been unable to find a way to develop Browse without unacceptable risks. There is now yet another reason that Woodside’s Browse proposal cannot be approved. To protect the endangered dusky sea snake, and all the other marine life at Scott Reef, the State and Federal governments must refuse Woodside’s Browse gas proposal,” added Beckerling.

Woodside (30.60%) is the operator while its partners are BP Developments Australia (44.33%), Japan Australia LNG (MIMI Browse) (14.40%), and PetroChina International Investment (10.67%). In June 2024, a declaration of an identified greenhouse gas storage formation was made by the Commonwealth government over the Calliance storage formation within the G-8-AP greenhouse gas assessment permit.

Shortcut not in store for offshore carbon dumping go-ahead

The Conservation Council of WA underlines that Woodside’s attempt to bypass the environmental approval process has been knocked back for a critical component of its massive Browse gas proposal, just weeks after it was revealed that the WA EPA has deemed Browse gas “unacceptable” due to multiple serious environmental risks to endangered turtles, blue whales, and the pristine Scott Reef.

The rejection came just one year after Woodside described offshore carbon dumping at Browse as “high risk, high cost” and “unproven” in a 2022 application to the federal regulator. The identified risks included the potential impact of carbon dioxide leaking from wells or under the seabed, making nearby waters, including Scott Reef, more acidic while proposed seismic blasting, drilling, traffic, and light pollution risked harming marine animals including endangered whales.

Beckerling highlighted: “There has never been an offshore carbon dumping project in Australia, but Woodside is proposing to try this failed technology for the first time at the pristine Scott Reef. Carbon dumping is fantasy technology that doesn’t work, as we’ve seen with Chevron’s Gorgon facility, and it introduces a raft of new risks to the Browse gas proposal. 

“It doesn’t meaningfully reduce emissions and it could have catastrophic impacts on Scott Reef in the event of a leak and will significantly increase drilling, seismic activity, traffic and light pollution in this highly sensitive marine environment. The only thing that carbon dumping has achieved is to extend the life of the fossil fuel industry but it can’t save Woodside’s Browse proposal.”

The news comes at a time when Woodside’s application to extend North West Shelf, the oldest and largest gas plant in Australia, was to be decided by the WA government following a two-year appeals process plagued by issues.

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“Woodside has tried over and over to make offshore carbon dumping work just like they’ve tried for years to make Browse stack up – they can’t. Multiple authorities have now knocked back Woodside’s reckless approach to Browse gas because the risks are too high. The state and federal government need to do the same and put this proposal out of its misery,” emphasized Beckerling.

In the aftermath of the Western Australian Environmental Protection Authority’s rejection of Woodside’s proposed Browse gas project multiple environmental groups welcomed the decision alongside what they described as “a significant and historic finding” by the WA EPA. Only two out of 100 oil and gas proposals have been recommended by the WA EPA since the mid-1980s.

The CCWA underlines that the only way to avoid political pressure applied to the WA EPA by Woodside and the WA government is for the EPA process to be independent and free from political or corporate interference. It is understood that Woodside has requested more time to respond to the EPA, which will then make its final recommendation to the government. Both the state and federal governments will then make final decisions on whether Browse can go ahead. 

Beckerling elaborated: “This is a major blow for Woodside’s plan to develop the biggest new gas field in Australia. The WA EPA has recognised the unacceptable threat posed by Browse to the magnificent Scott Reef and the marine life off the Kimberley coast. Woodside has been trying to get this project over the line for many years but they cannot make it workgiven the profound impacts it would have on Scott Reef, Green Turtles and Pygmy Blue Whales.

“The EPA has now said what we knew all along – the Browse project would be devastating for WA’s environment, and no government should let it proceed. The EPA has only recommended against two other oil and gas proposals since the 1980s, which goes to show the profound impacts that this proposal would have on the environment – what was Woodside thinking trying to develop a massive gas project on top of a pristine coral reef? It is now incumbent on the WA and Federal Governments to respect this independent scientific advice and expert opinion, and refuse Woodside’s application to develop Browse.” 

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Previously, Woodside abandoned controversial plans to process Browse gas onshore at James Price Point in the Kimberley (2013), or a floating LNG processing platform offshore (2016). The current assessment of the Browse gas project began in 2019. Browse is projected to emit 6 billion tonnes of CO2 over its lifetime.

Paul Gamblin, WA Director of the Australian Marine Conservation Society, explained: “Woodside has failed for decades to read the room on its appalling plans for Scott Reef, as it seeks to impose its fossil fuel industrial development on this spectacular coral reef. Imagine the outcry if Woodside tried this on at Ningaloo Reef.

“Scott Reef is world-class, and fragile, like Ningaloo. Scott Reef’s remoteness has worked in Woodside’s favour – it’s been out of sight and out of mind – but its importance and status are now being widely recognised. It’s high time the Woodside joint venture abandoned its plans around the magnificent Scott Reef. Scott Reef is not owned by the oil and gas industry, it belongs to us all.” 

New offshore exploration rounds

Madeleine King MP, Minister for Resources and Minister for Northern Australia, said a few weeks ago that the Albanese government would finalize offshore exploration permits for gas supply to firm renewables and support the economy as Australia’s transition to net zero emissions continued. These permits were for Esso and Beach Energy in the Otway and Sorrell Basins, with any discovered gas to support the domestic east coast market.

Additionally, exploration permits would be arranged for Chevron, Inpex, Melbana, and Woodside Energy on Australia’s west coast, supporting energy security in Western Australia. Ten permits will also be ironed out for carbon capture and storage exploration. The International Energy Agency, the CSIRO, the UN Intergovernmental Panel on Climate Change, and Australia’s Climate Change Authority all identify that carbon capture, utilization, and storage will be needed to support the net-zero transition.

In response to the announcement that the federal government will grant new exploration licenses for offshore gas and carbon pollution dumping (CCS), Beckerling stated: “There is no future with gas. WA does not need more offshore gas exploration, with the vast majority of the gas we already produce exported overseas. Recent research even indicates that Woodside’s Burrup Hub is a net negative for WA’s domestic gas supply due to its increasing export demand. If WA were its own country, it would rank as the third-largest gas exporter globally. 

“Any new gas exploration amidst a climate crisis is dangerous and irresponsible. Major projects like Woodside’s Burrup Hub and Chevron’s Gorgon project are a major threat to a safe climate – threatening to emit billions of tonnes of carbon dioxide each decade. After our longest, hottest, driest summer ever recorded, WA has firsthand experience of the environmental and community costs associated with gas.”

Minister King claims gas is required to shift to renewables as Australia’s economy transitions to clean energy. Since this government came into office, there has been a 25% increase in renewable energy generation in the national electricity market, driving its total emissions and emissions intensity to record lows.

The most recent ACCC Gas Inquiry Interim Report makes clear that the domestic east coast market may experience gas supply shortfalls as early as 2027. Therefore, supply challenges could persist into the mid-2030s unless new sources of gas supply are developed, according to the minister.

“As ageing coal generation comes offline in coming years, gas will continue to be needed to firm renewable energy generation and as a backup during peak energy use periods. Gas is critical for the transition. But it will be a diminishing proportion of our energy mix to 2050 as other storage technologies come online,” highlighted Minister King.

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While the first principle of the government’s ‘Future Gas Strategy‘ is Australia needs to reach net zero emissions by 2050, gas demand is expected to decline sharply during the transition to clean energy, but steps to secure supply will still be necessary to ensure domestic demand can be met. King underscores that the finalization of offshore exploration permits does not automatically allow new offshore gas production to occur.

Craig Sisson, Convenor of Busselton Dunsborough Environment Centre, said: “We support renewable energy, and it should be built with minimal environmental impact to avoid repeating the mistakes of the past. Geographe Bay is habitat for critically endangered species, and government and industry must work together with independent experts to protect migration zones and ensure that species like sea grass, whales, sea lions, turtles, and seabirds are monitored and protected as a matter of priority

The Conservation Council of WA underlines that renewable energy is critical for climate action, but governments and industry must also protect important habitats and consult with communities. After Chris Bowen, Minister for Climate Change and Energy, disclosed the Bunbury offshore wind zone, Beckerling pointed out: “The science is clear: to avoid the worst impacts of climate change, we must transition from fossil fuels like coal and gas to renewable energy like solar and wind this decade.

“Not only are fossil fuel projects driving climate change, but many have been approved with poor planning and consultation. Renewable energy is the government’s chance to get things right for climate, nature, and communities. Together with communities across Western Australia, we’re calling for thorough environmental assessments to protect WA’s beautiful nature, and strong community consultation to make sure local people have a say in what the energy transition looks like for them.”

Given the current government’s belief that separate and extensive safety and environmental approvals are required through Australia’s independent National Offshore Petroleum Safety and Environmental Management Authority, more community consultation will also be required before any offshore exploration work can commence.

Beckerling said: “A clean energy future cannot rely on fossil fuels. Gas is a dirty and expensive resource that drives up costs. Carbon pollution dumping is an unreliable and impractical technology; it has only succeeded in prolonging the fossil gas industry.

“Why would the Resources Minister approve additional gas exploration when what we need is a sensible, rapid transition to renewable energy? More gas is a recipe for climate disaster and is no good for WA.”

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While no new seismic surveying is permitted as part of the approved work program for each permit, companies will need to license or reprocess existing seismic data. The CCWA is adamant that the government needs to conduct a comprehensive assessment to find the most appropriate location for the risks and potential impacts, and acknowledge and address the data gaps relating to environmental impacts from the range of activities required.”

Luke Twomey, CEO of the Western Australia Marine Science Institution, emphasized: “The announcement of an offshore renewable industry zone in Geographe Bay presents a unique opportunity to coordinate and collaborate on the collection of the baseline scientific information needed to make good, fact-based decisions for the region. 

“The region marked for development is vast, but our scientific knowledge is limited. It will be necessary to collect robust baseline scientific information to assist trust and transparency when making these important decisions. A collaborative approach is necessary to gather the baseline scientific information needed to make good decisions for the region.”

Last week, the Albanese government backed the independent Climate Change Authority’s ‘2024 Sector Pathways Review,’ commissioned by Parliament last year, to provide independent and technical advice on how major sectors of Australia’s economy can move towards decarbonization by examining the potential transition and emissions pathways in six sectors: energy and electricity; transport; industry and waste; agriculture and land; resources; and built environment.

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The report said: “Australia’s transition to a net zero economy is necessary, inevitable and urgent. Among developed countries, Australia is one of the most vulnerable to the impacts of climate change… Australia can prosper in a world with lower emissions, and not only because it would deliver a more hospitable climate.

“With its plentiful solar and wind resources, Australia can generate large amounts of renewable energy relative to the size of its population. An abundance of clean energy and critical minerals, combined with a skilled, highly educated workforce, innovative companies and strong institutions, will give Australia advantages in the global low emissions economy”

The pathways review finds that the ongoing rollout of reliable renewables and storage is central to Australia’s 2050 ambitions to reduce emissions in the electricity sector and unlock decarbonization across the economy through a wider ramp-up of electrification. The review stresses the need to deploy available and well-established technologies, like solar and wind, rather than wait for technologies that either do not exist or have not been used in Australia yet.

It also pours cold water over the possibility of Australia using nuclear energy to meet our 2050 targets, saying: “Australia’s lack of experience in building and managing nuclear power stations may reasonably lead to additional costs for a first-of-a-kind unit deployed in Australia. The estimated lead time of 15 to 20 years before operation (Graham et al., 2024) suggests this technology cannot make a timely contribution to replacing the generation capacity of retiring coal-fired power stations or to helping Australia achieve its carbon budget targets to 2050.”

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Bowen concluded: “The Albanese Government is working to bring down energy prices and emissions after a decade of delay, dysfunction and denial. Any delay risks not just our energy reliability and security but our ability to act on emissions reduction and secure the future for the next generation. The Climate Change Authority has examined the opportunities and challenges before Australian industries and businesses as they decarbonise.

“Encouragingly the Climate Change Authority sees the deployment of existing technologies, like solar and wind, as well as the potential of emerging technologies, like hydrogen, will support an orderly and prosperous transition. The Climate Change Authority also confirms today that in its independent, expert view, nuclear could not replace aging coal capacity fast enough to support Australia’s ability to reach its 2050 target.”