So on the Friday before Christmas both the Federal Labor Government and New South Wales Labor Government have approved new Fossil Fuel Projects. It is called putting out the trash. To try and limit scrutiny and media coverage of these actions. To release them when the public are focussed on christmas and holidays.
NOPSEMA approved Shell Australia Crux gas field development in the northern Browse basin off the North West shelf of Western Australia.
The Minns Labor Government in New South Wales recommended approval of an expansion of Idemitsu's Boggabri coal mine which will be responsible for 63 million tonnes of GHG pollution. The expansion proposes to increase annual direct greenhouse gas emissions by about 14% from 2023 to 2036.
And Some positive news: the new Queensland Premier announced a ban on new oil and gas drilling in the Lake Eyre Basin and floodplains.
Shell's Crux Gas development, north-western Australia
This decision will result in 2.5 times the emissions reduction the Government claim will occur under the Safeguard Mechanism to 2030
The NOPSEMA Approval notice gives the background:
The Shell-operated Crux development is located in Commonwealth waters in the northern Browse Basin, 190 kilometres (km) offshore north-west Australia and 620 km north-east of Broome, in approximately 165 metres (m) water depth.
The Crux gas field has been identified as a source of backfill gas to the existing Prelude Floating Liquefied Natural Gas (FLNG) facility.
The project is being progressed by the Crux Joint Venture with Shell Australia as majority operator and encompasses the Production Licence AC/L10.
The first environmental approval for Crux was the Crux Offshore Project Proposal (OPP), which was accepted in August 2020 by the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA).
The Crux development drilling program (inclusive of drilling template and docking pile installation) is the first significant infield activity planned to occur to support the execution of the Crux development.
Marke Ogge, who works for the Australia Institute, says in a twitter thread:
Royalties are the payment gas companies should make for gas. The Australian Government does not levy any royalties on Crux gas, meaning Shell will get the gas for free.
Shell receive all the gas they sell from Gorgon and Prelude for free and sell it for tens of billions of dollars. Yet most years they pay zero company tax.
This table shows ATO corporate Tax Transparency data to most recent available.
One reason Shell pay so little tax may be activities to reduce their taxable income such as (reportedly) selling LNG cargoes to its marketing hub in low tax jurisdiction Singapore below market price, then selling on at full market price. (AFR Link, 8 Aug, 2022: Shell’s Singapore hub questioned as gas pressure mountsShell have admitted they will never pay resource tax (PRRT), despite selling the free gas for tens of billion of dollars. (Boiling Cold link, 30 March 2021, Shell predicts free gas forever for Gorgon and Prelude LNG)
So much for the Australian Governments rhetoric of phasing out fossil fuels when the next week they approve a massive new gas field!
This decision will result in 2.5 times the emissions reduction they claim will occur under the Safeguard Mechanism to 2030.
Minns NSW Government approves Idemitsu's Boggabri coal mine
Lock the Gate highlighted the NSW Labor government approving a new coal mine right before christmas:
"The NSW Gov just couldn't help themselves - had to take out the trash on a Friday afternoon before Christmas.
This new coal expansion will be responsible for 63 million tonnes of GHG pollution."
The NSW Minns Government has recommended an expansion of Idemitsu's Boggabri coal mine be approved - the first coal expansion to be determined since the state election.
The Lock the Gate media release states:
In the lead up to the last state election, NSW Labor said “new coal mine projects must be subject to an independent approval process” (See attached election platform provided to Lock the Gate Alliance).
However, due to an arbitrary decision by the NSW Government to classify the project as a “modification”, it will not be referred to the Independent Planning Commission.
The Idemitsu owned coal project is the first of at least 14 new NSW coal projects expected to be determined by the State Government in the next 18 months. Together, these projects would be responsible for more than two billion tonnes of greenhouse gas emissions - 15 times NSW annual emissions.
Idemitsu was previously penalised for stealing more than 500 Olympic swimming pools’ worth of water at its Boggabri coal mine during a drought.
Lock the Gate Alliance NSW coordinator Nic Clyde argued that the the NSW Government had broken its promise to ensure independent assessments of coal projects,
“The Minns Government has broken its promise of independent decisions and is continuing with the same destructive pro-coal policies as the former Coalition Government, no matter the cost. It’s little surprise this terrible recommendation was quietly made public on a Friday afternoon before Christmas.
“This is the first of at least 14 proposed coal expansions in NSW that will blow NSW and Australian climate targets and put us all at risk.
“The NSW Climate Change (Net Zero Future) Act 2023 became law less than two weeks ago. In passing the Act, the Parliament recognised that ‘action is urgently required to reduce greenhouse gas emissions’ in NSW.
“The expansion proposes to increase annual direct greenhouse gas emissions by about 14% from 2023 to 2036, which runs in the opposite direction to the emissions reduction trajectory required by the Act of at least a 70% reduction by 2035.
“It’s unbelievable that the Minns Government is pushing business as usual on coal mines. Parts of NSW are experiencing extreme bushfires and heatwaves - and we haven’t even reached peak summer.
“We’re calling on the Minns Government to protect its citizens, and stop the latest coal rush immediately, putting in place a pause until proper climate considerations are embedded into mining decisions."
Queensland to ban new oil and gas drilling in Lake Eyre basin rivers and floodplains
Some positive news is that the new Queensland Premier announced a ban on new oil and gas drilling in the Lake Eyre Basin and floodplains.
This was a a nine-year-old election commitment to reinstate protections for the state’s pristine channel country.
Guardian Australia reports that under the changes, any future oil or gas drilling in the floodplain areas of the Kati Thanda-Lake Eyre basin would be blocked. Holders of exploration permits will be able to apply for production leases until 30 August next year. This sunset term will not apply to any “unconventional” gas drilling proposals.
Unfortunately this doesn't necessarily change the fossil fuel addiction of the Queensland Government. Premier Steven Miles said:
“While these changes may have a small effect on some future gas developments, I have asked the resources department to propose projects that will more than offset any gas supply affected.”
Read more at the Guardian report.
Lock the Gate is chalking this ban as an incredible win.
References:
NOPSEMA, Crux Development Drilling, accessed 23 December 2023, https://info.nopsema.gov.au/environment_plans/603/show_public
Lock the Gate, 22 December 2023, Minns Government recommends approval for first coal expansion since election, https://www.lockthegate.org.au/minns_government_recommends_approval_for_first_coal_expansion_since_election
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