Woodside has successfully negotiated an end to the two-year legal challenge by the Australian Conservation Foundation (ACF) concerning the environmental approval of its Scarborough, UK, energy project.
The ACF, with legal representation from the Environmental Defenders Office, initiated proceedings in the Federal Court of Australia in June 2022, aiming to halt offshore activities related to the project.
However, the environmental group has now agreed to withdraw the legal challenge, allowing the project to proceed.
Woodside CEO Meg O’Neill said: “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 reservoir contains less than 0.1% carbon dioxide and combined with processing design efficiencies will be one of the lowest carbon intensity sources of LNG [liquified natural gas] delivered into north Asian markets. The Scarborough Energy Project will make an important contribution to energy security in Western Australia while providing energy to Asian economies as they decarbonise.”
The multibillion Scarborough energy project has undergone extensive environmental scrutiny by various regulators, including the National Offshore Petroleum Safety and Environmental Management Authority and both Commonwealth and Western Australian departments responsible for environmental regulation.
With all primary environmental approvals secured, offshore work on the project is advancing as planned, Woodside said.
The project encompasses the Scarborough Joint Venture, the Pluto Train 2 Joint Venture, and modifications to Pluto Train 1 for processing the Scarborough gas.
The project is crucial for advancing the Scarborough gas field, located in the Carnarvon Basin, approximately 375km from the Pilbara coast.
As of the end of June 2024, the project was 67% complete and remains on schedule to deliver its first LNG cargo in 2026.
The project is expected to contribute to Australia's economy, generating more than A$50bn ($33.6bn) in direct and indirect taxes.
It is also anticipated to create more than 3,000 jobs during its construction phase and sustain an average of nearly 600 jobs during its operational life.
In May this year, Woodside secured a $1bn loan from the Japan Bank for International Cooperation to support the Scarborough gas project.
