Chevron's Gorgon project could face regulatory action on emissions after ministerial decision

29 May 2020, 10:18 by Hamish Hastie

Chevron's efforts to meet CO2 emissions targets and environmental conditions for its Gorgon LNG plant have been dealt a massive blow.

The oil and gas giant received environmental approval for its US$56 billion Gorgon plant by promising to pump at least 80 per cent of ‘reservoir’ emissions into the island’s underground reservoir using a new carbon dioxide injection system.

https://static.ffx.io/images/$zoom_0.215%2C$multiply_1.5109%2C$ratio_1.776846%2C$width_1059%2C$x_0%2C$y_54/t_crop_custom/q_62%2Cf_auto/3caeea2478b05c9d9d28802b6587ed80b7f15f59 — Technicians at Chevron's carbon capture and storage project at the Gorgon LNG site on Barrow Island off WA.

Reservoir gas makes up about 40 per cent of total project emissions but the system was delayed and by late August when Chevron finally got the system working, nearly three years after production on train one began, it had already pumped 6.3 million tonnes of CO2 into the air, according to the company’s own emissions reports.

Performance against the 80 per cent target was to be assessed on a five-year average but no definitive start date had been set for those five years.

Chevron argued that date should be when all gas processing trains were running at full capacity.

That was rejected by the WA Environmental Protection Authority, which recommended the assessment period start when production began on the individual trains: July 2016 for train one and July 2018 for trains two and three.

The company and environmental groups had been eagerly awaiting a decision from WA Environment Minister Stephen Dawson, and late on Friday afternoon it was revealed the minister had adopted the EPA’s recommendations.

This means Chevron is three years behind the eight-ball when the five years of emissions are assessed after July next year.

Unless the company can make up those lost emissions, it is likely to face some regulatory action from the Department of Water and Environmental Regulation, which has previously stated it would not determine Chevron’s compliance with the condition until Mr Dawson’s decision.

It has previously said if Chevron was found non-compliant after July 2021, the department would then “consider its regulatory options”.

Chevron was approached for comment.

With Emma Young