Australia Approves Gorgon Gas Project

PERTH, Australia – Australian officials gave the green light Wednesday to the giant Gorgon gas project off the coast of northwestern Australia, clearing the way for Chevron Corp. and its partners to develop the country’s second liquefied natural gas plant – but with strict environmental conditions.

The approval allows energy companies Chevron, Exxon Mobil Corp. and Royal Dutch Shell PLC to develop a planned 10 million metric ton (11 million ton) a year liquefied natural gas plant on Western Australia state’s remote Barrow Island.

Conservation groups have vigorously opposed the project, saying it will threaten an endangered species of marine turtle. Last year, the state’s Environmental Protection Authority said the project should be blocked to protect the rare flatback turtles, which nest on beaches shared by the proposed plant.

Federal Environment Minister Malcolm Turnbull approved the project Wednesday, saying strict environmental controls would be imposed to protect the island’s ecosystem, “including listed threatened and migratory species and rare vegetation.”

The ministers said the Gorgon project would inject some 20 billion Australian dollars ($18 billion) into the local economy and create 6,000 jobs over the life of the project.

Project operator Chevron holds a 50 percent stake in the huge gas field, which is estimated to contain more than 40 trillion cubic feet of gas and has a nominal development life of around 60 years. Exxon Mobil and Royal Dutch Shell each hold 25 percent stakes.

Among the Federal government conditions, Gorgon must develop and implement a quarantine management plan to protect threatened species, provide environmental management plans for the operation of the gas field and refining plant and submit annual environmental reports to the Department of the Environment.

Gorgon also faces 36 conditions from the Western Australian state government and expert panels to protect the biodiversity of the island and surrounding marine environment. One of the requirements is that the project must establish a reservoir for a carbon dioxide, or CO2, re-injection system.