2019-10-22 09:38:391970-01-01 00:00:00

LNG Threatened in Western Australia

The State Government of Western Australia and resource industry leaders in the state are attempting to negotiate an emissions reduction plan, amidst the Environmental Protection Agency’s (EPA) radical plan to implement a zero emissions target for all new projects. The State Labor Government are currently working with the industry on alternative climate change initiatives to curb carbon output, especially from the large LNG segment. The EPA also expressed concerned about the trajectory of WA’s emissions, which had increased by 27% from 2000 to 2016.

Western Australia’s EPA announced early last year that it would introduce tough new regulations aimed at curbing greenhouse emissions from large projects. Saying that they were setting a “higher bar” for how they will assess the impact of major projects on the climate, and whether a project would be inline with Australia’s 2020-Paris obligations.

The authority’s chairman Tom Hatton told reporters in WA early last year that Australia was not on track to meet its targets and the federal government, “are not going to deliver the outcomes as currently applied that are necessary for Australia to meet its international obligations”. The presented guidelines target project proposals with direct emissions of over 100,000 tonnes of carbon dioxide equivalent per annum. Proposals would need to demonstrate they have taken all “reasonable and practicable design measures”, including the use of renewable energy – also having to offset all net direct emissions associated.

Since then, the EPA withdrew the set of guidelines after being confronted with significant government and private push-back, especially from the state’s powerful mining lobby. The WA EPA has also announced that it will open its greenhouse gas guidelines on June 10 for consultation and is likely to be based upon the aforementioned guidelines.

Whilst the guidelines are not binding on the state government, the industry warned they will suffer as international investor confidence will most likely be deteriorated, whilst adding extra political and legal risks to ventures.

According to the AFR, the LNG industry had also received assurances from the Australian Labor Party, in which the industry would receive special exemptions from national targets. Obviously, this was to no prevail, given the election result, and with the re-elected Coalition government the industry has been exposed to the hardline views of the EPA.

The Western Australia Labor Premier, Mark McGowan, attended the Australian Petroleum Production and Exploration Association to provide his assurances to executives in Brisbane that the EPA guidelines would not be government policy in Western Australia. Mr McGowan is attempting to temper the political lobbying powerhouse of the resource industry with a policy outcome which he could sell to his political constituency, insisting to the energy sector that the EPA has an “open mind”.

Alternatives are being explored in confidential negotiations between the government and large companies, which explore commitments to offset a percentage of project emissions via large-scale planting of trees and land management – this approach is not new and has been explored by Woodside Petroleum in the past.

Whilst the private sector and the Labor government have seemingly warned off the EPA’s concerns, increasing pressure for the resource industry in general and LNG in particular to take more of an initiative has only increased. Initiatives that take the shape of Chevrons’ much anticipated plans for carbon capture and storage on Gorgon’s Barrow Island, which will be functional later this year. Chevron will also offset its emissions at the colossal Wheatstone LNG project, despite its obligation to do so being lifted.

Overseas, there is increasing appreciation by large players for investor and financier demand to be seen operating in a sustainable manner in terms of emission reduction. Given this, and the ever increasing pressure for energy companies to become more sustainable, the EPA’s non-binding guidelines being sidestepped is likely only the start of regulatory tightening in the long-term but a speed bump in the short-term.

By Sydney Robertson

Click here for a 7 days access to our Lotus Blue Portal.

KOSEC does not take into account the investment objectives, financial situation and advisory needs of any particular person, nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information provided. KOSEC is intended to provide general information only. Please be aware that investing involves the risk of capital loss. This message is confidential and may be privileged. It is intended only for the use of the addressee named above. If you are not the intended recipient, any unauthorised dissemination, distribution or copying is illegal. We do not guarantee the security or completeness of information hereby transmitted and are not liable in either respect or in respect of any delay. Nothing in this message is intended as an offer or solicitation for the purchase or sale of any financial instrument. Any market prices or data, unless specifically verified and identified as such, are not warranted as to completeness or accuracy. Kodari Securities Pty Ltd (KOSEC) is a Corporate Authorised Representative (No. 399 556) of Longhou Capital Markets (AFSL No. 292464) which is regulated by the Australian Securities and Investment Commission (ASIC). KOSEC wishes to disclose that KOSEC and its staff may hold stock they recommend in their own portfolios and that any decision to purchase recommended stock should be done so after the purchaser has made their own inquires as to the suitability to their own requirements. Click here to view our FSG.

KOSEC Terms & Conditions

Kodari Securities Pty Ltd (CAR 399556) trading as KOSEC is regulated by the Australian Securities and Investment Commission (ASIC). KOSEC is a financial services company and any information provided by its platforms, portals, reports and documents is protected by copyright. Any unauthorised production of this information is prohibited.
KOSEC reserves the right to change or remove any information provided on our website, reports or any documents including these terms and conditions at any time without notice. The change or modification to the terms and conditions will be effective immediately upon posting an updated version on our website, necessary platforms and documents. It is recommended that you review the information provided on our website, including these terms and conditions frequently for any changes.

Disclaimer
KOSEC provides general advice only. The information provided is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. KOSEC recommends that you obtain your own independent professional advice before making any decision in relation to your particular requirements or circumstances. Please make sure you read our Financial Services Guide (FSG).

KOSEC does not guarantee any returns. Past performance of any product discussed is not indicative of future performance. (We urge that caution should be exercised in assessing past performance. All financial products are subject to market forces and unpredictable events that may adversely affect their future performance). Investing in the stock market can incur huge losses. Please also be aware that fees will incur on every transaction regardless of the performance of your investments or returns generated. Employees and or associates of KOSEC may hold one or more of the stocks, securities or investments reviewed by the company.

Your use of information from our website, reports, documents and from talking to our representatives/associates is at your risk. Under no circumstance should the investment be based solely on KOSEC information and general advice. You should seek professional financial planning advice.
KOSEC aims to maintain the accuracy of the data and information provided on this website, by using information prepared from a wide variety of sources, which KOSEC to the best of its knowledge and belief, considers accurate and does not make any representations or warranties of any kind, expressed or implied, about the completeness, accuracy, reliability, suitability or availability of the information provided.

We may at times refer to third parties, which the details of these third parties have been provided solely for you to obtain further information about other relevant products and entities in the market. KOSEC has no control over the information third parties have, or the products or services offered, and therefore make no representations regarding the accuracy or suitability of such information, products or services. You are advised to make your own enquiries in relation to third parties. Our inclusion of any third party content is not an endorsement of that content or the third party.

Fees
As a client you will be charged a yearly service fee and a set brokerage fee per transaction. Your service fee will automatically renew at the end of your agreed 12 month period at the same rate advertised at the time. Your credit card or bank account will be charged for a further year following which will again auto renew until you cancel your yearly service fee. You can cancel the auto renewal at any time in advance of the renewal date by contacting us. KOSEC is aware of the need to ensure the security of your credit card details and our payment systems are compliant with the Payment Card Industry (PCI) Data Security Standard.

Privacy
You consent to receiving email correspondence from KOSEC, as well as companies KOSEC has an association with. These emails will be sent by KOSEC and third party companies. You can opt out of receiving any category of emails at any time by contacting us. We may from time to time inform you of special offers, or even ask your opinion of the services we provide, but your involvement is optional. Should you request us to do so, we will archive your details.

Indemnity and Liability
You indemnify KOSEC from all claims or threatened claims, suits, demands, damages, costs as well as including legal costs incurred in dealing with any threatened claim, expenses made by any person or corporation against KOSEC and any other amounts which is caused by KOSEC providing information, execution and General Advice.

You hold KOSEC harmless and release it from any liability in respect of any loss, harm or damage arising from a decision made by you on the basis of information obtained through the use of our portal, reports, documents or any General Advice given and any transaction taken place.

You hold KOSEC harmless and release it from any liability in respect of any loss, harm or damage arising from delays in executing orders for the client and acknowledges KOSEC makes no guarantees about the time taken to execute an order on behalf of the client. You acknowledge that KOSEC relies on third parties in providing technology and release KOSEC from any harm, loss or damage you may suffer as a result of the failure of such information technology.

Cookies and Links
KOSEC website, and its portal uses cookies, which lets us identify your browser while you are using the site or our portal. Cookies do not identify you personally. They simply allow us to track your usage patterns. If you prefer not to receive cookies, you can configure your browser to reject them or to notify you when they are being used. The functionality of the KOSEC website may be impacted if you restrict the use of cookies.

Fill up the form below and we will get back to you as soon as possible.

CLAIM YOUR FREE E-BOOK &
7 DAY ACCESS TO LOTUS BLUE

STOCK MARKET SUCCESS

KOSEC’s CEO, Michael Kodari’s new book, “Stock Market Success” valued at $39.95, available at Dymocks book stores with all the proceeds going to Dymocks Children’s Charities.

CLAIM YOUR FREE E-BOOK WHEN YOU LOGIN TO LOTUS BLUE INVESTMENT PORTAL

Latest TV Commercial