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    Woodside, ACF agree to dismiss legal challenge against Scarborough project

Summary

The Federal Court proceedings sought an injunction to halt offshore activities for the project, but the parties have now agreed to seek orders from the Court to dismiss the case.

by: Shardul Sharma

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Woodside, ACF agree to dismiss legal challenge against Scarborough project

Woodside and the Australian Conservation Foundation (ACF) have agreed to dismiss the ACF’s challenge to a primary environmental approval for Scarborough project, Woodside announced on August 19. The Scarborough project has secured all primary environmental approvals, and offshore work is progressing well, the company stated.

The Federal Court proceedings sought an injunction to halt offshore activities for the project, but the parties have now agreed to seek orders from the Court to dismiss the case.

Woodside CEO Meg O’Neill welcomed the agreement to dismiss the proceedings. “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 rely on the energy these projects produce,” she said.

O’Neill further noted, “The Scarborough reservoir contains less than 0.1% carbon dioxide, and combined with processing design efficiencies, it will be one of the lowest carbon intensity sources of LNG delivered into North Asian markets.”

The ACF, represented by the Environmental Defenders Office, initiated the Federal Court of Australia proceedings regarding the offshore environmental assessment of the Scarborough project in June 2022.

The final investment decision on the Scarborough project was made in November 2021, with the commencement of LNG cargo targeted for 2026. The project, located approximately 375 km off the coast of Western Australia, includes the Scarborough joint venture, the Pluto Train 2 joint venture, and modifications to Pluto Train 1 to accommodate Scarborough gas.

Gas from Scarborough will be processed at the Pluto LNG facility, where Woodside is currently constructing Pluto Train 2, which would have a capacity of about 5mn tonnes/year.

In May, Woodside signed a $1bn loan agreement with the Japan Bank for International Cooperation (JBIC) to fund the Scarborough gas project.