Morrison government says no to controversial Pep11 gas drilling project off NSW coast
A controversial proposal to drill for oil and gas off the New South Wales coast will not go ahead after the federal government announced it would refuse an application to extend an exploration permit.
The petroleum exploration permit, known as Pep11, has been held by several different energy providers in recent years and allows for offshore drilling of gas and oil, and seismic testing in 4,500 sq km of water from off Manly on Sydney’s northern beaches up to Newcastle.
Community groups, including Save Our Coast, have been campaigning against efforts to develop the area because of environmental concerns and the impact on whale migration paths.
A petition run by Save Our Coast gained 60,000 signatures and was presented to parliament by independent MP Zali Steggall in February.
Steggall has been joined in opposition to Pep11 by Greens leader Adam Bandt, Labor MP Emma McBridge, and a group of moderate Liberals including Jason Falinski.
The prime minister, Scott Morrison, announced on Thursday he had advised the NSW deputy premier Paul Toole and the National Offshore Petroleum Titles Administrator of the federal government’s intention to refuse the application.
“This project will not proceed on our watch,” Morrison said.
“Gas is an important part of Australia’s current and future energy mix but this is not the right project for these communities and pristine beaches and waters.”
Morrison said his government rejected the application due to the widespread community opposition, a lack of financial support underpinning the program and a lack of good reasons to justify extending the permit.
The move directly contradicts the federal resources minister, Keith Pitt, who has previously expressed consistent support for the project despite community opposition.
Advent Energy and Bounty Oil & Gas had sought a renewal of the explo
ration licence and permission to undertake exploratory drilling in the area.
Labor welcomed the decision, but said the party would wait to see official confirmation the application had been rejected.
“Actions speak louder than words,” opposition leader Anthony Albanese and shadow minister assisting for climate change Pat Conroy said in a joint statement.
“Mr Morrison has been saying he doesn’t approve the PEP-11 extension since March, so Labor looks forward to the official confirmation that it has been rejected once and for all.”
Belinda Baggs, co-director of Surfers for Climate Action, thanked the federal government for listening to the community.
“After years of campaigning against this polluting project, my heart is full to know that the community’s passion for the ocean and care for our climate has overcome the petroleum industry,”
The Pep11 may not be going ahead, but the government has set aside $220m to unlock gas developments as part of its Beetaloo strategic basin plan in the Northern Territory, and $15.7m to support developments in the North Bowen and Galilee basins in Queensland.
Dr Madeline Taylor, from the Climate Council and Macquarie University’s School of Law, said the decision was a “huge win” for those who had been fighting the project 20 years.
“The fact it hasn’t been developed in that period shows this project was never viable commercially in the first instance anyway,” Taylor said.
“It’s a huge win for the community but there’s a lot more work to be done to ensure other new greenfield gas projects do not go ahead.”
The International Energy Agency suggested in May that limiting global heating to 1.5C, a goal set out in the Paris agreement, meant exploration and exploitation of new fossil fuel basins had to stop this year.