By Renju Jose
SYDNEY (Reuters) – Western Australia’s environmental regulator said on Monday it expects to release its recommendations on Woodside (OTC:) Energy’s Browse gas project in 2025, after a newspaper reported the massive project could be rejected by the regulator.
The $20.5 billion project in the waters off Western Australia is the country’s largest untapped gas resource, but has been on the drawing board for decades.
A report in the Sydney Morning Herald newspaper said on Monday that preliminary comments from the Western Australian Environmental Protection Authority (EPA) sent to the company in February called the terms of the proposal “unacceptable”.
“It is not appropriate to comment on any outcome before the review and appeals process is complete,” EPA Vice President Lee McIntosh said in an email.
Woodside’s development plan has been under review since 2020 and the company has requested an extension to respond to the regulator, McIntosh said, adding that final recommendations would go to the state government in 2025.
The company wants Browse to replace aging gas fields to supply the North West Shelf LNG (liquefied) plant and meet demand from Australia’s largest trading partners, including China, Japan and South Korea.
Woodside declined to confirm whether it had received a report from the EPA, but said the company continued to work with regulators to advance environmental approval for the project.
The company’s shares fell about 3% in late morning trading, largely in line with the broader market’s decline.
BP (NYSE:) has a 44.33% stake in the project, while Japan Australia LNG (MIMI Browse) has 14.40% and PetroChina 10.67%. Woodside, the operator, owns a 30.60% stake.
Browse requires approval from state and federal governments. The federal Labor government sees gas as a crucial element in the country’s transition to cleaner energy and in May backed long-term gas drilling despite a target for net-zero carbon emissions by 2050.
Environmental groups oppose the development of Browse, saying it threatens the endangered Pygmy Blue Whales and Green Turtles and would increase the risk of pollution and oil spills.
