Woodside Energy’s Browse project, located in the waters off Western Australia, is one of the country’s largest undeveloped natural gas deposits.
Valued at $20.5 billion, the project has been awaiting approval for several decades due to stringent environmental assessment requirements.
The state’s Environmental Protection Authority (EPA) has announced that its final recommendations will not be published until 2025.
A recent article in the Sydney Morning Herald reveals that the EPA already made preliminary comments in February, calling certain conditions of the project “unacceptable”.
Despite this, the EPA prefers not to comment until the assessment process and appeals have been completed.
According to EPA Vice President Lee McIntosh, Woodside has requested several extensions to meet environmental requirements.
A strategic project under close scrutiny
The Browse project is crucial for replacing the aging gas fields that feed the North West Shelf LNG (liquefied natural gas) plant.
It aims to meet the growing demand from major trading partners such as China, Japan and South Korea.
However, the project is hotly contested by environmental groups, who warn of risks to endangered species such as blue pygmy whales and green turtles, as well as threats of pollution and oil spills.
Woodside continues to work closely with regulators to obtain the necessary environmental approvals.
As a result, the company’s shares fell by around 3% in late morning trading, a trend in line with the general market decline.
Regulatory partners and outlook
The Browse project is split between several major players: BP holds 44.33%, Japan Australia LNG (MIMI Browse) 14.40%, and PetroChina 10.67%, while Woodside, as operator, has a 30.60% stake.
Final approval depends on the state and federal governments.
The federal government, under the Labor administration, sees gas as a crucial element in the energy transition to a low-carbon economy, despite the goal of carbon neutrality by 2050.
The final decision on the Browse project will have to balance economic imperatives with environmental concerns.
The forthcoming debates between the various stakeholders will be decisive for the future of this major energy project.
