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Barossa Gas Project

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The Barossa Gas Project is an offshore gas and condensate oil field under construction in Australian waters in the Timor Sea around 300 km (190 mi) north of Darwin.[1] Upon completion in late 2025 it is estimated to be the most carbon-intensive gas development in Australia.[2][3]

The project is intended to supply the Darwin LNG facility (DLNG) at Wickham Point, Middle Arm near Darwin, a first of its kind facility in the Northern Territory and only the second in Australia. The facility is currently supplied by the Bayu-Undan field where reserves were depleted in 2023.[4] This requires construction of a new pipeline called the Darwin Pipeline Duplication Project approves in March 2024, which, for part of its length, runs parallel to the existing Bayu-Undan to Darwin Pipeline.[5][6]

Worth A$4.7 billion, the project is expected to create about 600 jobs during construction and 350 ongoing jobs in Darwin over the following 20 years.[7]

The project was accepted by the Commonwealth Government's independent regulator for offshore oil and gas development, the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) in March 2018.[8] Santos bought ConocoPhillips' interest in the project in 2019.[9]

Environmental impact

The Barossa Gas Project is approximately 33 km from the Oceanic Shoals Australian Marine Park.[10]

The project has been criticised for its future carbon emissions. If developed, Barossa would become the most carbon-intensive gas development in Australia,[2] due to the high concentration of CO2 in Barossa's gas of about 18 per cent.[11] It has been estimated that as much as 1.5 tonnes of CO2 could be produced for every tonne of LNG.[12] A 2021 report using the Darwin LNG project as a case study suggested that emissions could be greatly reduced by the use of solar power by using Sun Cable's Australia-Asia Power Link[2] but the Institute for Energy Economics and Financial Analysis (IEEFA) described the project as an “emissions factory with a gas by-product”,[13] saying that even if it employed carbon capture and storage, the project would continue to release financially risky carbon dioxide emissions at the site, onshore and across the whole supply chain.[14]

In March 2023 the Australian Government reformed its Safeguard Mechanism, requiring Australia's biggest greenhouse gas emitters to keep their direct emissions below a prescribed baseline limit by either reducing or offsetting emissions.[15] This would have a significant impact on the Barossa Gas Project due to its significant emissions, at a estimated additional cost of between A$500 million and A$987 million between now and 2030.[16] Santos CEO Kevin Gallagher strongly opposed the changes claiming it would make the project unviable, lobbying the government to enable them to use carbon capture and storage (CCS) to offset emissions. This would involve separating out the carbon dioxide at the Darwin LNG facility and piping it back to the Bayu-Undan field to be stored under the sea floor, essentially exporting it as the field is in Timorese waters.[17] Despite never having completed a similar project and known limitations to CCS technology at that scale, the Labor Government quickly passed the Environment Protection (Sea Dumping) Amendment (Using New Technologies to Fight Climate Change Bill, leading opponents to call it 'the Santos Amendment'.[18][19]

South Korean case

A March 2022 legal challenge by leaders of the Larrakia and Jikilaruwu Tiwi Islands clan targeted the South Korean state-owned Export-Import Bank of Korea and the Korea Trade Insurance Corporation. An injunction application attempted to stop the Export-Import Bank of Korea (KEXIM) and the Korea Trade Group (K-Sure) from providing loans and guarantees of up to A$700 million for the project.[20] They hoped to prevent Santos from building the gas pipeline near Cape Fourcroy, a habitat for many marine species, and a place where many Aboriginal people hunt, live, and camp.[21] However the case failed in the Seoul District Court.[22]

Tipakalippa case

In June 2022, traditional owners of the Tiwi Islands filed a lawsuit against Santos and the federal government, who they said had not properly consulted them. Munupi Senior Lawman and Tiwi Traditional Owner Dennis Tipakalippa also argued that NOPSEMA, the federal offshore gas regulator, should not have approved Santos’ plans to drill the Barossa gas field due to the Santos' inadequate consultation.[23] The traditional Owners are concerned about the effect on the nesting areas of flatback and olive ridley turtles, which provide one of the Aboriginal people's traditional food sources. Four federal government marine parks, including Ashmore Reef, are also in the vicinity. Santos has submitted an environmental impact plan, which includes the potential impact of an oil spill, and its plans for cleanup should one occur.[7] In September 2022 Judge Mordecai Bromberg found that NOPSEMA was "not lawfully satisfied that consultation had occurred", dismissing Santos’ environmental plan, thus invalidating its approvals for drilling. As a result, Santos had to disconnect its drilling rig from the sea north of Melville Island and leave the Barossa field by 6 October 2022.[24] In December Santos lost an appeal.[25][26] In January 2023 NOPSEMA ordered Santos to stop construction on their pipeline to enable a cultural heritage survey to be done.[27] Despite no direct involvement in the case, in April 2024 Sunrise, Jubilee Australia and the NT Environment Centre were ordered to hand over documents, to determine whether Santos will also pursue costs for the lawsuit carried out by the EDO on behalf of Tiwi Island traditional owners, which has been critiqued by human rights groups.[28]

References

  1. ^ Richardson, Nathan (30 March 2021). "Australia's Santos takes FID on Darwin LNG Barossa backfill project". S&P Global Commodity Insights. Retrieved 7 June 2022.
  2. ^ a b c Vorrath, Sophie (16 November 2021). "Gas industry proposes big solar to halve LNG emissions, with support of Sun Cable". RenewEconomy. Archived from the original on 17 November 2021.
  3. ^ "Barossa project progressing offshore Australia". Offshore. 2024-02-21. Retrieved 2024-05-20.
  4. ^ "Australia's only helium plant shuts down after gas supply for Darwin plant runs out". ABC News. 2023-12-05. Retrieved 2024-05-20.
  5. ^ "Darwin Pipeline Duplication (DPD) Project NT EPA Referral" (PDF). Northern Territory Environment Protection Authority (NT EPA). Retrieved 2021-12-08.
  6. ^ Redman, Chris (2024-03-28). "Government approves Santos Barossa pipeline and sea dumping". The Australia Institute. Retrieved 2024-05-20.
  7. ^ a b Bardon, Jane (7 June 2022). "Tiwi traditional owners launch Federal Court action to try to stop Santos Barossa gas field". ABC News. Australian Broadcasting Corporation. Retrieved 7 June 2022.
  8. ^ "Activity - Barossa Gas Export Pipeline Installation". National Offshore Petroleum Safety and Environmental Management Authority. Retrieved 2024-05-20.
  9. ^ "ConocoPhillips Announces Agreement to Sell Interests in Australia-West for $1.39 Billion". ConocoPhillips. 2019-10-13. Retrieved 2024-05-20.
  10. ^ "Industry environment plans". info.nopsema.gov.au. Retrieved 2024-05-20.
  11. ^ "Sea dumping legislation paves way for opening of new gas fields in Timor Sea". ABC News. 2023-11-14. Retrieved 2024-05-17.
  12. ^ "Santos back to the drawing board on unapproved Barossa gas project". ieefa.org. Retrieved 2024-05-17.
  13. ^ "'A carbon dioxide emissions factory': New $4.7b gas field may release more CO2 than LNG, says report". ABC News. 2021-06-23. Retrieved 2021-08-13.
  14. ^ "IEEFA Update: Santos won't solve the problem of Barossa LNG with carbon capture and storage". Institute for Energy Economics & Financial Analysis. 20 October 2021. Archived from the original on 23 October 2021.
  15. ^ Patrick, Rex (2023-12-09). "Carbon Captured: Santos emails reveal gas giant orchestrated "Environment Protection" laws". Michael West. Retrieved 2024-05-20.
  16. ^ "The New Safeguard Mechanism and the Santos Barossa Gas Project". The Australia Institute. 2023-05-17. Retrieved 2024-05-20.
  17. ^ "Will Santos's $4.7 billion Barossa gas project go ahead?". ABC News. 2023-03-30. Retrieved 2024-05-20.
  18. ^ Davies, Luciana Lawe (2023-11-13). "Government's 'dirty favour for Santos' bill passes with opposition support". The Australia Institute. Retrieved 2024-05-20.
  19. ^ Patrick, Rex (2023-12-09). "Carbon Captured: Santos emails reveal gas giant orchestrated "Environment Protection" laws". Michael West. Retrieved 2024-05-20.
  20. ^ "Traditional owners vow to keep fighting billion-dollar gas project despite losing court battle". ABC News. 2022-05-25. Retrieved 2024-05-17.
  21. ^ "South Korea sued to stop deep-sea gas pipeline". BBC News. 23 March 2022.
  22. ^ Bardon, Jane (25 May 2022). "Traditional owners vow to keep fighting Barossa gas field despite losing South Korean court battle". ABC News. Australian Broadcasting Corporation. Retrieved 7 June 2022.
  23. ^ "Tiwi Traditional Owner wins legal challenge to Santos Barossa Gas Project". Environmental Defenders Office. 21 September 2022. Retrieved 2022-09-21.
  24. ^ Nadig, Smruthi (21 September 2022). "Santos Australia loses environmental protection case in Tiwi Islands". Offshore Technology. Retrieved 2022-09-21.
  25. ^ "Dennis Murphy Tipakalippa v National Offshore Petroleum Safety and Environmental Management Authority & Anor". Climate Change Litigation. Retrieved 2024-05-17.
  26. ^ "Santos has lost a major gas battle against Tiwi Islands' traditional owners. Here's why they hope Barossa will still go ahead". ABC News. 2022-12-03. Retrieved 2024-05-17.
  27. ^ "Santos ordered to pause Barossa project pipeline construction after watchdog's surprise inspection". ABC News. 2023-01-25. Retrieved 2024-05-17.
  28. ^ Kurmelovs, Royce; Cox, Lisa (2024-04-25). "Activist groups not directly involved in Tiwi Island lawsuit must hand over documents to Santos, court rules". The Guardian. ISSN 0261-3077. Retrieved 2024-05-17.
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