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Executive Summary

This report assesses the environmental impact of the proposal by Phillips Oil  Company Australia to establish a Liquefied Natural Gas (LNG) plant at Wickham  Point, Darwin Harbour and a subsea pipeline from the Bayu Undan field in the  Timor Sea. Phillips Oil Company Australia is a subsidiary of Phillips Petroleum  Company which is the operator of a joint venture holding a Production Sharing Contract over the Bayu-Undan field in the Timor Sea Zone of Cooperation. The  project proposes to pipe gas from the field to a LNG plant at Wickham Point in  Darwin Harbour, where it will be separated into its various components, liquefied and exported to market via tankers.

This report reviews the draft Environmental Impact Statement (EIS), public  comments and the proponent's Supplement to the draft EIS. Information, comments  and advice provided by Northern Territory Government agencies have also been  used in its preparation.

Environmental impact assessment is the process of defining those elements of  the environment which may be affected by a development proposal and of  determining the significance, risks and consequences of the potential impacts of  the proposal. Recommendations arising from the assessment address methods to  mitigate these impacts.

Major Issues

The major environmental issues identified with the development and operation  of the LNG Plant and Pipeline are:

  1. Plant location and expansion
  2. Planning, land use concepts and cumulative impacts
  3. Access road
  4. Pipeline construction
  5. Atmospheric emissions
  6. Water quality (including potential for increased turbidity, sedimentation,  acid leachate, introduction of exotic marine pests and stormwater  runoff/drainage)
  7. Flora, fauna and habitat management
  8. Waste management
  9. Heritage, cultural and social values
  10. Monitoring requirements
  11. Hazard and Risk Assessment

Conclusion

It is considered that the environmental issues associated with the proposed  project have been adequately identified. Some of these issues have been resolved  through the assessment process, while others will be addressed through  monitoring and management actions detailed in an Environmental Management Plan  (EMP) to be completed when the proposal has been finalised but before  commencement of construction. The EMP will be subject to review by relevant NT  and Commonwealth Government agencies before finalisation.

The EMP will be the major vehicle for implementing the proponent's management  and monitoring commitments outlined in the EIS and the recommendations detailed  in this assessment report. As such, it will be a working document for the life  of the plant and it will require continual review in the light of operational  experience and changed circumstances.

In addition, the LNG plant is expected to be licensed under the forthcoming  Waste Management and Pollution Control Act and will be required to comply with  any licence conditions as well as regulations set out under the Act, including  regular compliance auditing and reporting.

The major on-going environmental impact from the project is expected to be  the production of large amounts of the greenhouse gas, carbon dioxide. Section  4.6.2 discusses the greenhouse implications of the plant and Recommendation 14  outlines actions to be undertaken by the proponent in order to reduce or offset  the production of carbon dioxide as the operation proceeds. The plant will also  produce a number of atmospheric pollutants, however these are all estimated by  the proponent to be below NT and national guidelines.

Other major impacts of the project are the loss of 11.9 ha of mangroves and  46 ha of dry rainforest. Construction of the jetty may result in sedimentation  either side of the groyne which could result in changed zonation patterns of the  mangroves. A further impact is the modification of marine habitat along the  length of the pipeline.

Short term impacts will result from increases in sedimentation and turbidity  associated with dredging for the turning basin and construction dock and  construction of the pipeline shore crossing. Pipeline construction will create  localised increased turbidity and will temporarily interrupt some fishing and  recreational activities.

No significant residual impacts are likely as a result of the project,  although there are uncertainties as to the significance, in a global sense, of  the CO2 emissions from the plant. Provided that the  environmental commitments and safeguards detailed in the EMP are undertaken, the  recommendations in this report are adopted and regular compliance auditing and  reporting are undertaken, long term impacts should be avoided or mitigated.

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