By Mike Foley
The political saga over the PEP11 gas project off Sydney’s coastline took another unexpected twist on Tuesday, as federal Resources Minister Madeleine King surrendered her veto powers over the controversial development.
The ambitious plans by Asset Energy and Bounty to tap the seabed for gas off the coast of Sydney have been mired in delays for at least four years. The Petroleum Exploration Permit 11 – known as PEP 11 – was collateral damage in the fallout of former prime minister Scott Morrison’s secret ministries scandal, after the federal court found he had shown “implacable opposition” and bias in refusing the permit.
Resources Minister Madeleine King. Credit: Christopher Jue
While the court case revoked Morrison’s decision and restarted the application process, the federal government has not declared what it will do about the project since coming to power in May 2022, even though Albanese said during the election campaign that he was opposed to the project.
The companies’ plan is opposed by community groups, the state government and Prime Minister Anthony Albanese.
So it came as a shock to observers when King announced on Tuesday she would absent herself from decisions on PEP11, handing her veto power to Science and Industry Minister Ed Husic.
King and Husic share responsibility for the Department of Industry, Science and Resources, which means Husic has ministerial power to direct decision-making on PEP11.
PEP11 is jointly administered by state and federal governments and while NSW has made its stance clear, the Commonwealth has yet to state its position.
NSW created new laws in February that ban offshore gas and oil projects as well as prevent seabed pipelines from pumping gas to the shore.
But the project could still proceed. It would be located in Commonwealth waters, which start three nautical miles from the coast, and gas could be shipped to shore without the need for a pipeline through state waters.
Former prime minister Scott Morrison instructed the industry regulator in December 2021 to notify them he would refuse the application to renew PEP11.
The Federal Court nullified Morrison’s decision in February 2023, saying he had shown “implacable opposition” and “bias” in his comments about PEP11, which were issued before making that decision.
It emerged after the election that Morrison had secretly made himself federal resources minister to override incumbent minister Keith Pitt, who wanted the project to proceed.
Albanese mirrored Morrison’s pledge to end PEP11 in the 2022 election campaign, saying: “A Labor government that I lead will rule out PEP11. Unequivocal. Full stop. Exclamation mark.”
However, the court ruling that revoked Morrison’s cancellation of PEP11 rebooted the assessment process, and it remains unclear when the federal government will reveal its position.
King may have recused herself from decisions on PEP11 to limit the possibility of a legal challenge over bias.
Surfers for Climate chief executive Josh Kirkman said King’s decision was “bizarre” and called on Husic to act.
“Coastal communities of NSW are tired of this decision being handballed around Canberra,” Kirkman said.
“Last month the NSW government, with bipartisan support from the Coalition, did the right thing and banned all new offshore oil and gas exploration in NSW waters. And yet we’ve been waiting more than 12 months for federal Labor to make a decision. It’s time for Ed Husic to end this saga for good.”
Warringah MP Zali Steggall said King had recused herself “clearly due to risk of further litigation” and criticised the minister for the length of time it had taken to act on “this cockroach of a project”.
“This should have been done months ago. Our communities have been waiting too long,” Steggall said.
Mackellar MP Sophie Scamps said her electorate was opposed to PEP11 and King’s move showed that the government was taking all the possible steps to ensure legal processes are followed.
“Whilst I support this move, I will continue to urge the Industry Minister, Ed Husic, and the state resources minister to put this to bed once and for all as aligned with our community’s expectations,” Scamps said.
Advent Energy Executive Director David Breeze said the decision to review PEP11 was a routine administrative matter and further development of the project would also require assessment.
“Any future authorisation related to drilling will require environmental approvals. Any issues around community or environmental impacts should be transparently managed by the designated independent expert regulator,” Breeze said.
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