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Plan for liquid natural gas hub at James Price Point in WA given green light Plan for liquid natural gas hub at James Price Point in WA given green light
(5 months later)
A group of independent assessors has granted conditional environmental approval for a huge $45m onshore gas processing hub on Australia’s remote north-west coast. A group of independent assessors has granted conditional environmental approval for a huge $45bn onshore gas processing hub on Australia’s remote north-west coast.
The three delegates hired by the Environmental Protection Authority were asked in January 2014 to assess a proposal to construct a common-user liquid natural gas precinct at James Price Point near Broome, 2,240km north of Perth, Western Australia.The three delegates hired by the Environmental Protection Authority were asked in January 2014 to assess a proposal to construct a common-user liquid natural gas precinct at James Price Point near Broome, 2,240km north of Perth, Western Australia.
The proposal includes the development of a 50 million-tonne LNG gas processing plant, two heavy industrial areas taking up as much as 1,000 hectares, port facilities, a 300-metre wide shipping channel and a possible desalination plant.The proposal includes the development of a 50 million-tonne LNG gas processing plant, two heavy industrial areas taking up as much as 1,000 hectares, port facilities, a 300-metre wide shipping channel and a possible desalination plant.
In an report, released on Monday, the delegates recommended that the proposal could go ahead, subject to extensive environmental conditions including a plan to minimise the impact on Aboriginal heritage sites and an extensive tract of dinosaur footprints.In an report, released on Monday, the delegates recommended that the proposal could go ahead, subject to extensive environmental conditions including a plan to minimise the impact on Aboriginal heritage sites and an extensive tract of dinosaur footprints.
It would be a major industrial development. The original proponent for the site, Woodside Petroleum, announced in April 2013 that it was scrapping its plans for an onshore development in favour of a floating gas hub near its leases in the Browse gas field, 425km offshore from Broome.It would be a major industrial development. The original proponent for the site, Woodside Petroleum, announced in April 2013 that it was scrapping its plans for an onshore development in favour of a floating gas hub near its leases in the Browse gas field, 425km offshore from Broome.
That project is now in the design stage and since last year the political debate has been focused on a cluster of rocks off the coast, whose discovery allowed WA to claim that a larger chunk of the gas field was in state waters and therefore net an extra $2bn in royalties.That project is now in the design stage and since last year the political debate has been focused on a cluster of rocks off the coast, whose discovery allowed WA to claim that a larger chunk of the gas field was in state waters and therefore net an extra $2bn in royalties.
The Wilderness Society, which led the 2012 court case that resulted in the EPA’s first assessment of the project being declared invalid, has described the new assessment as unnecessary.The Wilderness Society, which led the 2012 court case that resulted in the EPA’s first assessment of the project being declared invalid, has described the new assessment as unnecessary.
“From our perspective it seems like things have moved on, this is a moot point and this assessment is null and void,” Wilderness Society WA director Jenita Enevoldsen told Guardian Australia.“From our perspective it seems like things have moved on, this is a moot point and this assessment is null and void,” Wilderness Society WA director Jenita Enevoldsen told Guardian Australia.
“There’s no impetus for this to occur. The battle was lost back in 2012.”“There’s no impetus for this to occur. The battle was lost back in 2012.”
Enevoldsen said the Wilderness Society would appeal the latest EPA approval, which is open for public comment until 9 November.Enevoldsen said the Wilderness Society would appeal the latest EPA approval, which is open for public comment until 9 November.
The chief justice of the WA supreme court, Wayne Martin, ruled in 2012 that the EPA’s initial assessment of the proposal, published in December 2010, and the Barnett government’s subsequent approval of the project were “unlawful and invalid,” because the majority of the board of the EPA had an interest in the proposal, usually in the form of company shares.The chief justice of the WA supreme court, Wayne Martin, ruled in 2012 that the EPA’s initial assessment of the proposal, published in December 2010, and the Barnett government’s subsequent approval of the project were “unlawful and invalid,” because the majority of the board of the EPA had an interest in the proposal, usually in the form of company shares.
Woodside is the majority stakeholder in the Browse joint venture project, but Shell Australia and BP control 27% and 17.3% respectively.Woodside is the majority stakeholder in the Browse joint venture project, but Shell Australia and BP control 27% and 17.3% respectively.
In his 83-page judgement, Martin said that the assessment process was directed by decisions made at “meetings at which a number, often a majority, and on one significant occasion, all of those participating in the decision-making were disqualified from participation by reason of their pecuniary interest in the proposal” and that “those invalid decisions were an integral and indispensable part of the assessment process”.In his 83-page judgement, Martin said that the assessment process was directed by decisions made at “meetings at which a number, often a majority, and on one significant occasion, all of those participating in the decision-making were disqualified from participation by reason of their pecuniary interest in the proposal” and that “those invalid decisions were an integral and indispensable part of the assessment process”.
Outgoing EPA director Paul Vogel did not have an interest in the project but the court found that he adopted in substance a report made on the back of the invalid assessment.Outgoing EPA director Paul Vogel did not have an interest in the project but the court found that he adopted in substance a report made on the back of the invalid assessment.
The independent assessors included Tom Hatton, who joined the EPA board in 2014 and is set to take over as chairman in November. The other delegates were EPA board member Glen McLeod, who joined in 2013, and Gerard Early, the former deputy secretary of the federal environment department.The independent assessors included Tom Hatton, who joined the EPA board in 2014 and is set to take over as chairman in November. The other delegates were EPA board member Glen McLeod, who joined in 2013, and Gerard Early, the former deputy secretary of the federal environment department.
Speaking to reporters on Monday, the WA premier, Colin Barnett, suggested that the site would still be developed as a gas hub, but not by Woodside.Speaking to reporters on Monday, the WA premier, Colin Barnett, suggested that the site would still be developed as a gas hub, but not by Woodside.
“Well I think what you’re seeing is another step in approving the site at James Price Point so you can have future industry there,” Barnett said.“Well I think what you’re seeing is another step in approving the site at James Price Point so you can have future industry there,” Barnett said.
“That won’t be the Browse gas project itself but into the future there may well be an LNG site established there.”“That won’t be the Browse gas project itself but into the future there may well be an LNG site established there.”
Barnett said that Woodside’s decision to use a floating gas hub was disappointing because it “reduced the opportunities for Western Australia,” but remarked that “there are several other opportunities out there yet to be developed.”Barnett said that Woodside’s decision to use a floating gas hub was disappointing because it “reduced the opportunities for Western Australia,” but remarked that “there are several other opportunities out there yet to be developed.”