Woodside Energy Group Ltd WDS shares are trading higher premarket Monday. The company, along with the Australian Conservation Foundation (ACF), reached an agreement to dismiss the ACF’s challenge to the primary environmental approval for the Scarborough Energy Project.
The ACF, represented by the Environmental Defenders Office, commenced Federal Court of Australia proceedings in June 2022 regarding the offshore environmental assessment of the project.
The Scarborough Energy Project, covering the Scarborough Joint Venture and Pluto Train expansions, was 67% complete by June 2024, with LNG production slated for 2026.
The project has secured all primary environmental approvals, and offshore work is advancing as planned.
The Federal Court proceedings aimed to halt these offshore activities, but both parties have agreed to request the court to dismiss the case.
Woodside CEO Meg O’Neill said, “The Scarborough reservoir contains less than 0.1% carbon dioxide and combined with processing design efficiencies will be one of the lowest carbon intensity sources of LNG delivered into north Asian markets.”
“The Scarborough Energy Project will make an important contribution to energy security in Western Australia while providing energy to Asian economies as they decarbonise.”
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The Australian Conservation Foundation disclosed that it would no longer pursue its legal case against the Scarborough gas project, acknowledging that the case was “unlikely to succeed,” reported Reuters.
The green group added, “The reality is that Australia’s laws work in favour of fossil fuel interests. There is still no explicit requirement for climate damage to be considered under our key national nature law, the Environment Protection and Biodiversity Conservation Act.”
This month, Woodside disclosed a deal to acquire 100% of OCI Global’s equity interests in the Clean Ammonia project under construction in Beaumont, Texas, for $2.35 billion on a cash-free and debt-free basis.
Price Action: WDS shares are up 1.04% at $17.54 premarket at the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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