Santos to "vigorously defend" legal challenge to Barossa gas pipe
Australian energy company Santos will "vigorously defend" a legal proceeding brought by the Environmental Defenders Office (EDO) to stop the start of pipeline work at its Barossa gas project off northern Australia, it said on October 31.
The EDO, a non-profit organisation, started the case on behalf of an indigenous group. The EDO alleges that the pipeline will have significant environmental impacts and risks, in particular to submerged Tiwi cultural heritage.
“Santos respects the cultural heritage of the Tiwi people and while we understand and respect there are a range of views about the Barossa gas project, we will vigorously defend Federal Court proceedings commenced by the Environmental Defenders Office on behalf of Mr Simon Munkara,” the company said.
Drilling at the project has been suspended since September last year after a judge set aside the acceptance by the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) of the environment plan covering the drilling activities.
The Environment Plan (EP) for the gas export pipeline installation was accepted by the Australian offshore regulator NOPSEMA in March 2020. Santos said it has complied with the applicable regulations and requirements stipulated by NOPSEMA, and the regulator has monitored that compliance.
“Santos rejects the allegations in the application that there are significant environmental impacts or risks in relation to submerged Tiwi cultural heritage,” the company said.
The Barossa project is approximately 46% complete. Barossa's gas supplies are intended to extend the life of Santos's 3.7mn tonnes/year Darwin LNG facility in the Northern Territory. The $3.6bn investment programme got underway with the project's final investment decision last March 2021, with the first gas due in 2025.
"Provided the pipelay is completed in 2023, and drilling activities commence before the end of the year, guidance to the market on Barossa cost and schedule remains unchanged," Santos said.
In the event any injunction is granted, the company will assess the impact on the schedule and cost of the Barossa gas project and will update the market accordingly. The Barossa project is co-owned by Santos, South Korea’s SK E&S and Japan's Jera.