PEP-11 Offshore Gas Exploration Facing Likely Refusal, Minister Signals

The controversial PEP-11 gas exploration project, spanning from Sydney to Newcastle, is one step closer to being potentially shut down, with Federal Minister for Industry and Science, Ed Husic MP, stating he holds concerns about the applications lodged by Asset Energy Pty Ltd. However, a final decision is still pending, as Asset Energy has been given the opportunity to address these concerns.

In a statement released on 18 September 2024, Minister Husic announced his preliminary view that the PEP-11 applications should be refused. The decision comes after a careful review of all material submitted by Asset Energy. The gas exploration project has been met with longstanding opposition from coastal communities, environmentalists, and political figures.

History of PEP-11

PEP-11, a Petroleum Exploration Permit granted in 1999 under the Offshore Petroleum and Greenhouse Gas Storage Act 2006, covers over 4,500 square kilometres of ocean offshore between Sydney and Newcastle. The permit has faced a turbulent history, with increasing public discontent and growing concerns about the project’s environmental impact, particularly its potential for oil spills and damage to marine life.

In 2021, despite mounting opposition, then-Minister for Resources Keith Pitt extended the permit, sparking political and public backlash. The extension became a focal point in debates during the 2022 federal election. Coastal residents feared that the project would harm tourism, fisheries, and the environment. By 2022, public resistance was further fuelled by revelations that former Prime Minister Scott Morrison had secretly taken on multiple ministerial roles, including in resources, in an attempt to control the outcome of the PEP-11 decision.

Latest Developments

While Minister Husic’s preliminary view is that the applications should be refused, Asset Energy has been given the opportunity to provide additional information. According to Husic’s statement, the company must address the concerns raised before any final decision is made.

“As part of the ordinary fair process, I have given Asset Energy an opportunity to provide further information to address concerns that I currently hold about the applications,” Husic said. “Once I receive a response from Asset Energy, I will carefully consider any further information provided.”

For Newcastle MP Sharon Claydon, this development is a win for local communities. “The Newcastle community’s message has been loud, clear, and consistent – PEP-11 is not welcome,” she said. Claydon and other local leaders have long advocated against the project, arguing that it poses a significant risk to the region’s environment and economy.

Community Response

The opposition to PEP-11 is not limited to political leaders. Grassroots campaigns, environmental organisations, and local businesses have rallied against the permit for years. Residents along the coastline fear that any gas extraction could lead to disastrous environmental outcomes, including harm to marine ecosystems and disruptions to coastal tourism.

PEP-11’s supporters argue that the project could provide a domestic supply of gas, easing energy shortages. However, these arguments have struggled to gain traction in a region where environmental concerns outweigh potential energy benefits.

What Happens Next?

Minister Husic’s final decision will hinge on the response from Asset Energy. The Australian Government has committed to following due process under the Offshore Petroleum and Greenhouse Gas Storage Act 2006, and no further comments will be made until the process concludes.

If the final decision results in the refusal of PEP-11 applications, it will mark the end of a long and contentious battle between gas developers and coastal communities. However, if Asset Energy provides satisfactory answers to the concerns raised, the debate around PEP-11 may not yet be over.

Key Dates in PEP-11’s History

• 1999: PEP-11 permit granted for offshore gas exploration.
• 2021: Minister Keith Pitt extends the exploration licence amid public opposition.
• 2022: Scott Morrison’s secret involvement in PEP-11 decision-making comes to light.
• 2024: Minister Ed Husic forms a preliminary view to refuse the applications.