Legal challenge over Woodside's Scarborough project dismissed
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The news: Woodside Energy and the Australian Conservation Foundation (ACF) have agreed to dismiss ACF's challenge to a primary environmental approval for Woodside's Scarborough energy project as it would be unlikely to succeed.
The numbers: Woodside shares lifted 1% to $26.38 by 2:40pm AEST.
The Scarborough gas field, located in the Carnarvon Basin around 375km off the coast of WA, was 67% complete at the end of June and is on track to deliver the first liquified natural gas (LNG) cargo in 2026. Woodside said the project is expected to generate more than $50 billion in direct and indirect taxes for Australia's economy.
In February, Woodside agreed to sell a 15.1% stake in the Scarborough joint venture to Japan's largest power company JERA in a $2.13 billion deal, which saw the Perth-based energy company retain a 74.9% interest in the project and remain as operator.
The context: ACF, represented by the Environmental Defenders Office, commenced Federal Court proceedings in June 2022, seeking an injunction to stop offshore activities for the Scarborough energy project. The environmental organisation had previously contested that the project should be assessed over its impact on the Great Barrier Reef.
ACF noted that it had made the "difficult decision" not to proceed with its legal case against the project after it became apparent last week that it was unlikely to succeed.
Woodside said the parties have agreed to seek orders from the court to dismiss the proceedings. The energy giant noted that the project has "all primary environmental approvals in place and offshore work is progressing well".
What they said: "The reality is that Australia's laws work in favour of fossil fuel interests," ACF said in a media release. "There is still no explicit requirement for climate damage to be considered under our key national nature law, the Environment Protection and Biodiversity Conservation Act."
"We understand how disappointing this news will be to many and implore our federal government to act on their promise to fix our broken nature laws, so that the burden of tackling this issue does not have to be squarely placed on us," it said.
"It is disappointing that this case will not be heard in the Federal Court. And we offer our apologies to those who have supported us."
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," she said. "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 delivered into north Asian markets."
The sources: Woodside media release, ACF media release
