Australian regulator: No decision on Woodside Browse Gas Project yet

Western Australia's environmental regulator announced on Monday that it will release recommendations in 2025 on Woodside Energy’s Browse gas project. A newspaper had reported earlier this week that the large project could be rejected.

This $20.5 billion gas project off the coast of Western Australia, the largest in the country but still untapped resource has been on the drawing boards for years.

The Sydney Morning Herald reported on Monday that the Western Australian Environmental Protection Authority (EPA) sent preliminary comments to the company, in February, calling the proposed terms "unacceptable".

In an email, EPA vice chair Lee McIntosh stated that it was not appropriate to make any comments on the outcome of this process until all assessments and appeals have been completed.

McIntosh stated that Woodside has had its development plan under review by the regulator since 2020. The company also requested extensions in order to provide a response to the regulator. McIntosh added the final recommendations will be made to the State Government of California in 2025.

Browse is being developed to replace the old gas fields that supply North West Shelf (Liquefied Natural Gas) plants and to meet Australia's largest trading partners including China, Japan, and South Korea.

Woodside refused to confirm if the EPA had sent a report, but stated that the company was working with regulators on environmental approvals.

The company's shares were down approximately 3% late in the morning, in keeping with the overall market decline.

BP owns a stake of 44.33% in the project. Japan Australia LNG has a 14.40% share, and PetroChina has 10.17%. Woodside is the operator and owns 30.60%.

Browse requires approval from both the federal and state governments. Gas is a key element of the transition towards cleaner energy in Canada. The federal Labor Government views it as such and has backed gas drilling for long periods despite its goal to achieve net-zero emissions by 2050.

The environmental groups are opposed to development in Browse because they claim it would threaten the Pygmy Whales, Green Turtles, and increase the risks of oil spills. Reporting and editing by SonaliPaul in Sydney.

(source: Reuters)