Tanya Plibersek gives Santos gas expansion project green light

The Queensland gas expansion project’s approval threatens to derail Labor’s ongoing negotiations with the Greens to win support for the government’s key climate policy.

Environment Minister Tanya Plibersek. Picture: NCA NewsWire / Gary Ramage

The Greens say Labor’s environmental credentials are “in tatters” after Environment Minister Tanya Plibersek gave the green light for a new gas expansion project in Queensland, amid deteriorating negotiations over Labor’s key climate policy.

The criticism comes after The Australian revealed Ms Plibersek approved an application from energy giant Santos to construct and operate an expansion of 116 gas wells at an existing facility in the Surat Basin out until 2077.

The project’s approval has threatened to derail Labor’s negotiations with the Greens as it seeks to win support for its key climate change policy, with Climate Change and Energy Minister Chris Bowen locked in negotiations with the minor party in a bid to get Labor’s safeguard mechanism through the upper house.

Anthony Albanese on Tuesday slapped down threats from the Greens to block the carbon credits scheme without a blanket ban on fossil fuel projects, saying they would “not be entertained” by the government.

The Prime Minister said the Greens were trying to “exert their influence” in negotiations after the Coalition formally opposed their climate policy.

But Greens deputy leader Mehreen Faruqi said Labor’s climate credibility was “in tatters” after the new gas approval and called on Ms Plibersek to explain her decision to approve “new gas fracking until 2077”.

“Labor has just approved 116 new gas wells and its climate credibility is in tatters,” Senator Faruqi said. “Gas is as dirty as coal. We’re in the middle of a climate crisis and Tanya Plibersek needs to explain why Labor is approving new gas fracking until 2077.”

Labor’s safeguard mechanism – in which Australia’s 215 biggest-polluting facilities would slash emissions by almost 5 per cent each year out to 2030 – is essential to the government’s target to cut emissions by 43 per cent by the end of the decade.

With the Coalition opposing the safeguard mechanism, the federal government needs the votes of the Greens’ 11 senators and two crossbenchers to get its carbon credits regime through the Senate.

A spokeswoman for Ms Plibersek said the gas expansion was assessed on its merit and was subject to strict environmental approvals.

The spokeswoman said the federal government was putting Australia “on a clear path to net zero” through its $15bn National Reconstruction Fund, safeguard mechanism and support for electric cars.

The Australian understands the expansion is a small addition to an existing project which has been operational for more than eight years. “This proposal, as with all proposals, was assessed on its merits. It was subject to robust scientific assessments, and strict environmental approval conditions have been applied,” the spokeswoman said.

It comes after a new report from the Australian Energy Market Operator highlighted an “urgent” need to invest in back-up capacity – including batteries, long-life storage and more generation – to avoid the risk of blackouts later this decade.

Deputy Liberal leader Sussan Ley said Labor had been caught “speaking out of both sides of their mouth” on gas, and accused the government of failing to respect the crossbench in negotiations.

“Tanya Plibersek and Anthony Albanese have been quietly approving gas projects whilst courting the Greens in the Senate on their carbon tax and the National Reconstruction Fund,” Ms Ley told The Australian.