Australian LNG Sites Face Stricter Pollution Rules

The Northern Territory Environmental Protection Authority (NT EPA) has recommended imposing stricter license conditions on two major liquefied natural gas (LNG) export facilities in Australia: the Darwin LNG plant operated by Santos Ltd. and the Ichthys LNG plant operated by Inpex Corp. These recommendations, detailed in draft licenses released on May 15, 2024, aim to enhance environmental oversight and reduce the ecological impact of these significant industrial operations.

The proposed changes focus on several key areas of environmental concern. For Santos' Darwin LNG plant, the NT EPA has recommended a reduction in the allowable daily discharge of greenhouse gases, specifically carbon dioxide (CO2), from 10,000 tonnes to 5,000 tonnes. This represents a 50% decrease in the permitted daily emission limit. Additionally, the draft license proposes stricter controls on the discharge of wastewater, requiring that it be treated to remove contaminants before being released into Darwin Harbour. The regulator also seeks to improve monitoring and reporting of air quality around the facility, with specific attention to volatile organic compounds (VOCs) and nitrogen oxides (NOx).

Similarly, Inpex's Ichthys LNG plant, located on Bladin Point, is subject to proposed new conditions. The NT EPA recommends a reduction in the daily discharge limit for CO2 from 15,000 tonnes to 10,000 tonnes, a 33.3% decrease. The draft license also calls for enhanced monitoring of marine life in the vicinity of the plant's outfall pipes, with a focus on potential impacts from thermal pollution and chemical discharges. Stricter protocols for managing and reporting any accidental spills or leaks of hazardous materials are also included in the proposed revisions. The regulator has also requested more detailed information on the management of waste generated by the facility, including solid and liquid waste streams.

These recommendations come as part of a routine review process for the environmental licenses of both facilities, which are critical to Australia's substantial LNG export industry. The NT EPA is currently seeking public submissions on the draft licenses, with a deadline for feedback set for July 10, 2024. Following the public consultation period, the NT EPA will consider the feedback before issuing final decisions on the revised license conditions. Both Santos and Inpex have been given the opportunity to respond to the proposed changes. The proposed stricter conditions reflect a growing emphasis on environmental performance and sustainability within the global energy sector, particularly for large-scale industrial facilities involved in resource extraction and processing. The outcome of this review could set a precedent for future environmental regulations applied to other major industrial projects in the Northern Territory and Australia more broadly.