Environmentalists welcome scrapping of LNG project

Updated

Sorry, this video has expired Video: Cousins applauds Woodside for LNG decision (ABC News)

Environmentalists are claiming victory after Woodside abandoned its controversial $45 billion Browse LNG project in Western Australia.

Woodside has grounded the project at James Price Point, north of Broome, and will instead explore other options like a floating LNG facility.

WA Premier Colin Barnett says it would be a "tragedy and a missed opportunity" if Woodside does not proceed with a scaled-down project on the same site.

The Browse project was to be built in an area with one of the world's biggest collections of dinosaur footprints.

Though traditional land owners had signed a native title agreement, the plan outraged environmental groups and also upset some traditional land owners.

Prominent businessman and environmental activist Geoffrey Cousins says he is delighted by the news.

He says the site was a completely inappropriate place for a massive gas hub.

"It's not only the land aspects of it, but in order to bring the ships into the port that was planned at James Price Point, they have to dredge about 20 kilometres out to sea," he said.

"And this is one of the great migratory areas for humpback whales, so the environmental issues were massive."

Greens Leader Christine Milne says the announcement is great news.

"A big congratulations to all the campaigners and the Greens and everyone around the country who has worked hard to send Woodside away from James Price Point and stop the industrialisation of the Kimberley," she told a media conference.

Sorry, this video has expired Video: Community campaigner Nik Weavers reflects on the decision (ABC News)

The director of the Wilderness Society, Lyndon Schneiders, says Woodside was facing one of the biggest environmental battles in Australian history.

"The company may well have created a licence to print money but it would have destroyed its brand and its reputation, I think they've seen the writing on the wall," he said.

Nik Weavers from the No Gas Campaign group says there were many environmental concerns at play.

"The big thing about the Kimberley is that it's under researched and much of the research that Woodside and State Government [have done] in the past few years has been brief," she told ABC News 24.

"We were really concerned that the whale surveys, the bilby surveys, the turtle surveys, the damage to the monsoon vine thicket, the possible damage to our water table, the model damage to our air and clear skies has been brief and underdone."

Martin Pritchard from Broome-based group Environs Kimberley says while the decision comes as some relief, the community is still wary.

"People are very concerned that the options will still include the possibility of going to James Price Point through technology called 'next gen', which Woodside is developing at the moment," he said.

In a statement, Woodside said the Browse LNG project would not have delivered the required commercial returns.

"Woodside has completed its technical and commercial evaluation of the proposed Browse LNG development... and determined that the development concept does not meet the company’s commercial requirements for a positive final investment decision," it said.

"Woodside also acknowledges and thanks the communities in the West Kimberley, the Australian and Western Australian governments and the Shire of Broome for their support throughout the evaluation of the James Price Point development."

It says it will look at alternative options to develop the Browse gas field with its joint venture partners.

One of Woodside's Browse joint venture partners, Shell, says it wants the project to use its offshore floating processing technology.

Today's decision puts thousands of future construction jobs in jeopardy.

It would be a tragedy and a missed opportunity if that gas did not come on shore into Australia. WA Premier Colin Barnett

Mr Barnett says he was told by a staff member last night that Woodside would be issuing a statement.

He says the State Government did all it could to secure the project at James Price Point.

"It would be a tragedy and a missed opportunity if that gas did not come on shore into Australia ... and if there was not an opportunity for literally for thousands of people to work on the construction and hundreds to work on the operation and for gas to be available for our economy," he said.

Federal Resources Minister Gary Gray says he is confident Woodside will pursue other ways of developing the resource.

"This is a commercial decision. I remain confident, I always have been confident that the Browse gas fields will be developed," he said.

"I believe that will be the case and this is just another step down the road to ensure we will see a development of the browse oil and gas fields."

But Opposition resources spokesman Ian MacFarlane says the costs involved with building an LNG plant onshore have become too high.

"We now need to push to ensure that the joint venture which Woodside heads up actually moves to a floating LNG option," he said.

"We need to make sure that the resources there are developed both in terms of the benefit that will give Australia in exports but also there'll be long-term jobs in operating the floating LNG plant."

Prime Minister Julia Gillard says it is a decision for Woodside.

"It doesn't relate to any Federal Government regulatory issues or State Government regulatory issues. It's an issue for the company so it's for them to deal with," she said.

Topics: environmental-impact, environment, mining-environmental-issues, oil-and-gas, industry, business-economics-and-finance, broome-6725, wa, australia

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