Chevron Corp. could face tougher emissions curbs at Wheatstone LNG in Western Australia after the state reviews environmental conditions imposed on the $34-billion project.
The state government has asked the Environmental Protection Authority (EPA) to review Wheatstone following the repeal of the Clean Energy Act, which took effect in 2012 and led the state to waive some conditions set when the project was approved in 2011.
The original approval terms, which required Wheatstone to offset 2.6 mtpa of reservoir carbon dioxide emissions, were waived after the Clean Energy Act.
“The EPA will now carry out an inquiry into the current greenhouse gas condition placed on the project to ensure it is in line with contemporary best practice,” a spokeswoman for state Environment Minister Stephen Dawson said in emailed comments.
Chevron, which committed to a A$13-million environmental offsets package under the initial Wheatstone approval, including managing habitats for whales, dugongs and dolphins in waters near its operations, said it wanted a national approach to managing emissions.
“Chevron is disappointed by the WA government’s recent direction to the EPA regarding the ministerial conditions, given emissions from the Wheatstone project are regulated by the Australian government’s safeguard mechanism,” a Chevron spokeswoman said in emailed comments.
Since Chevron invested in Wheatstone in 2011 under the original emissions condition, reinstatement of the carbon offset requirement would be unlikely to dent assumptions around the project’s economics.
Chevron is operator and 64 percent owner of Wheatstone, alongside Kuwait Foreign Petroleum Exploration Co (KUFPEC), Woodside Petroleum, Japan’s Kyushu Electric Power Co and JERA.
Recommended Reading
Energy Transition in Motion (Week of April 14, 2023): Advancing Projects, Investment
2023-04-14 - Here’s a look at some of this week’s renewable energy news, including a U.S. outlook showing a shift from fossil fuels as renewable electricity capacity grows between 380% and 600% in through 2050.
Q&A: EnCap’s Thielemann: Private Equity ‘Survivors’ Poised to Thrive
2023-03-21 - EnCap private equity veteran Brad Thielemann discusses the role of private equity in traditional oil and gas investing — including the need to ramp up investments to meet demand — as well as its trajectory for financing the transitions ahead.
IEA: Solar to Overtake Oil Investments for First Time
2023-05-25 - OPEC has said calls by the IEA to stop investing in oil undermine global energy security and growth.
The OGInterview: Enbridge CEO Greg Ebel [WATCH]
2023-04-03 - Hart Energy Editorial Director Jordon Blum spoke to new Enbridge CEO Greg Ebel about the company's M&A prospects, investment in the energy transition, as well as its investments in LNG in Hart Energy LIVE's latest installment of The OGInterview.
Ranked: The Top 100 Private E&Ps
2023-05-22 - Enverus ran the numbers and analyzed the most prolific private E&Ps in the Lower 48 and Gulf of Mexico.