Application for Grant of a Pipeline Licence - Offshore Area of Western Australia

Overview

The Offshore Petroleum and Greenhouse Gas Storage Act 2006 was enacted to establish a framework for the regulation of offshore petroleum and greenhouse gas storage activities. This Act addresses the need for a comprehensive legislative regime to manage the environmental, safety, and economic aspects of offshore petroleum exploration, production, and storage. Enacted by the Parliament of Australia, the policy objective of this Act is to ensure that offshore petroleum activities are conducted in a manner that is safe, environmentally responsible, and economically efficient. The Act provides the legal basis for the regulation of offshore petroleum operations, including the issuance of licenses and permits, the setting of environmental standards, and the imposition of penalties for non-compliance. The legislation establishes a joint authority between the Commonwealth and the relevant state or territory to administer the Act. This collaborative approach ensures that both federal and state interests are considered in the regulation of offshore activities. The Act also includes provisions for public consultation and the consideration of community impacts, reflecting a commitment to transparency and stakeholder engagement in the decision-making process. Through this legislative framework, the Act aims to balance the development of offshore resources with the protection of the marine environment and the interests of local communities.

Scope and Application

The Offshore Petroleum and Greenhouse Gas Storage Act 2006 applies to the granting of a pipeline licence for the conveyance of petroleum in the offshore area of Western Australia. Specifically, this notice pertains to an application received from Woodside Energy Ltd, BHP Petroleum (North West Shelf) Pty Ltd, BP Developments Australia Pty Ltd, Chevron Australia Pty Ltd, Japan Australia LNG (MIMI) Pty Ltd, and Shell Australia Pty Ltd for such a licence. The application details the design, construction, and operational specifications of the proposed pipeline, including its route, materials, and capacity. This notice is effective upon its publication in the Australian Government Gazette and is issued by the National Offshore Petroleum Titles Administrator on behalf of the Commonwealth-Western Australia Offshore Petroleum Joint Authority. The Act provides for public submissions regarding the application within 30 days of the notice’s publication, allowing stakeholders to voice their concerns or support. The application is subject to compliance with the Offshore Standard DNV-OS-F101 and Australian Standard AS2885.4, ensuring the pipeline's design and construction meet stringent safety and technical standards.

Key Provisions

The notice given under section 708 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (the Act) pertains to an application for the grant of a pipeline licence by several companies, including Woodside Energy Ltd, BHP Petroleum (North West Shelf) Pty Ltd, BP Developments Australia Pty Ltd, Chevron Australia Pty Ltd, Japan Australia LNG (MIMI) Pty Ltd, and Shell Australia Pty Ltd, for the conveyance of petroleum in the offshore area of Western Australia. The pipeline's route is described in detail and is depicted in the attached map (Attachment 1), specifying the coordinates based on the Geodetic Datum of Australia (GDA94). The design and construction of the pipeline must adhere to the Offshore Standard DNV-OS-F101 – Submarine Pipeline Systems, as incorporated in Australian Standard AS2885.4 – Pipelines, Gas and Liquid Petroleum (Part 4: Submarine Pipelines), specifically complying with DNVGL-ST-F101. The pipeline design parameters include an outside diameter of 254 mm (10 inches), a length of approximately 14.7 km, a design life of 20 years, and a flexible Corrosion Resistant Alloy steel material. The Act imposes several obligations and requirements on the parties involved. The offshore pipeline must be designed and constructed according to the specified standards and parameters. This includes the use of flexible Corrosion Resistant Alloy steel for the pipeline material, ensuring compliance with DNVGL-ST-F101 API 17J unbonded flexible pipe. The pipeline's design capacity is set at 180 MMscf/d, with a maximum allowable operating pressure of 19.5 MPa. Additionally, the pipeline must be capable of operating within a temperature range of 97–115 °C and -30 °C. The applicants have requested that the proposed Lambert Deep manifold in Petroleum Production Licence WA-16-L be declared as a terminal station. The design must also incorporate cathodic protection using Al-Zn-In sacrificial bracelet anodes, monitored via ROV or AUV survey, and hydrate management through insulation and MEG injection. Failure to comply with the provisions of the Act may result in various civil and criminal consequences. The Act provides for offences and penalties for breaches, although specific maximum penalties are not detailed in the notice. Breaches of the Act can lead to enforcement actions, including fines, imprisonment, or both, depending on the nature and severity of the violation. Additionally, the applicants may face legal action if their pipeline does not meet the required standards or if they fail to adhere to the specified operational and safety requirements. The penalties can vary based on the specific provisions of the Act and the circumstances of the breach.