Asset Energy in push to overturn block on PEP-11 gas exploration permit
Asset Energy will lobby Anthony Albanese and Dominic Perrottet to overturn Scott Morrison’s refusal to proceed with its offshore NSW gas project.
Asset Energy will lobby Anthony Albanese and Dominic Perrottet to overturn Scott Morrison’s unprecedented refusal to proceed with its offshore NSW gas project, pledging to direct all reserves to the domestic market and address forecast gas shortfalls.
The company is challenging Mr Morrison’s role in scuttling its PEP-11 exploration permit off the coast of Newcastle in the Federal Court amid revelations he was granted powers by Governor-General David Hurley to overrule then resources minister Keith Pitt.
Court documents show the National Offshore Petroleum Titles Administrator provided advice in April 2020 for the federal-NSW joint authority, which Mr Morrison led from April 2021, to “approve the application”.
The documents reveal that on April 15 last year Mr Hurley handed Mr Morrison administrative powers over the entire Department of Industry, Science, Energy and Resources.
Mr Morrison, under pressure from Liberal MPs and candidates facing threats from teal independents and Labor in seats between Sydney and Newcastle, claimed authority over the PEP-11 decision from Mr Pitt, who had indicated he would approve the permit.
After making public statements between March and December last year pledging to block the project, Mr Morrison and the joint authority formally rejected the offshore exploration permit in March, weeks ahead of the election campaign.
Letters obtained by The Australian between Asset executive director David Breeze and NSW Deputy Premier Paul Toole reveal the company has asked the state government to reconsider the decision to block its gas exploration plans 30km off Newcastle.
Mr Toole told Mr Breeze last month that “while global events may be impacting on gas supply in Australia”, the NSW government would not change its opposition to offshore exploration and mining.
“Regarding the issues you have raised in relation to PEP-11 and the decision of the former prime minister and joint authority, it is not appropriate that I provide any comment on the matter while it remains before the courts,” Mr Toole wrote.
In his letter to Mr Perrottet, which was passed on to Mr Toole, Mr Breeze asked the Premier to allow “limited, safe and sustainable activity”.
“In light of significantly changed circumstances in the international energy market in the wake of Russia’s war on Ukraine and the prospect of sustained higher energy prices and imminent gas shortages in Australia, we would ask you reconsider,” Mr Breeze wrote.
The Perrottet government, which faces a tough election fight in March, has moved aggressively away from fossil fuels and towards renewables under the leadership of Energy Minister Matt Kean.
A spokesman for federal Resources Minister Madeleine King said the government would consider its legal options if the Federal Court found Mr Morrison “may not have made this decision according to law”.
“The Albanese government respects the rule of law and role of the independent judiciary in Australia,” Ms King’s spokesman said.
“If the courts find that the former prime minister, Scott Morrison, who personally made this decision, may not have made this decision according to law, then the government will work to find a legal solution to this issue.”
Mr Breeze told The Australian on Monday that the project had the potential to supply 20 years’ worth of gas for NSW.
“We acknowledge the widespread discussion around the potential impacts of gas exploration and future production, including in PEP-11,” Mr Breeze said.
“But all too often that discussion is distorted by false and exaggerated claims and ignores the long track record of Australia’s offshore petroleum industry and the ongoing need for gas to meet power generation, industry, and domestic demand.
“Our project can be advanced in a safe and sustainable manner that will protect the environment and deliver gas to the domestic market.”
Asset says it could deliver gas to the market within two years of completing the well, and expects to provide gas at about $8 a gigajoule – compared to average eastern Australian gas prices of $24.80 over the past three months.
New analysis, released by the Institute of Public Affairs on Tuesday, outlines the energy impacts of PEP-11, which has the potential to provide 6225 petajoules of gas across the basin licence area. The IPA says this is enough gas to power every household in NSW for 98 years, or every household in Australia for 30.7 years.
IPA deputy executive director Daniel Wild urged the Albanese government to establish an inquiry looking at “the circumstances surrounding PEP-11 and the ability to compel witnesses to appear”.
Mr Breeze criticised the memorandum of understanding signed between the Morrison government and NSW government in 2020, which promised a $2bn investment into gas infrastructure.
The funding pledge has to date not delivered any additional gas into the market.
Join the conversation
Less talk, more action, as the world leaves us behind
As we head to a federal election, our leaders need to stop talking about productivity and do something about it.
Read more
Crisafulli ‘pro-choice’ but won’t say why he voted against abortion decriminalisation
David Crisafulli has refused to explain why he voted against 2018 abortion reforms despite declaring on Tuesday night that he now believed that a woman had a right to choose whether to continue a pregnancy.
Read more