Wrong signal: Woodside gets greenlight, but Browse is still a black hole

The Australasian Centre for Corporate Responsibility​ (ACCR) is commenting on the announcement by Environment Minister Murray Watt that the Australian government has approved Woodside’s application to extend the life of the North West Shelf until 2070.

Commenting on the decision, Alex Hillman, Lead Analyst of the Australasian Centre for Corporate Responsibility (ACCR) said:

“The main reason Woodside wants the extension of the North West Shelf is to develop its Browse project. Something it has been trying, and failing, to do for over 50 years.

“Browse is the kind of project that should not go ahead. Browse does not make commercial or emissions sense.

“Woodside’s board has shown no ability to constrain its persistent and misguided pursuit of low-value fossil fuel projects, and this decision from government only serves to encourage it in the wrong direction.

“Investors will have to step up and play a vital role in restraining this company from making more poor decisions.

“Woodside and its partners have spent well over US$2.3 billion already on Browse. If Woodside was carefully stewarding its investors’ capital, it would have stopped working on this financial black hole of a project a long time ago.

“At full capacity, the North West Shelf would emit over 3 gigatonnes over its extended lifespan. Whilst there is major flooding in New South Wales and a major drought in South Australia, these are emissions that are going to cause Australians and investment portfolios further harm as the physical impacts of climate change increase.

“The International Energy Agency and Bloomberg New Energy Finance are projecting an LNG glut later this decade, meaning there is no commercial justification to add further LNG supply – and there is certainly no climate justification. Even if there was, Browse is more expensive than 70% of competing potential new gas supplies around the world.”