1.0 Introduction and Background
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. Figure 1 and Figure 2 show the location of the plant and pipeline.
This assessment report reviews the draft Environmental Impact Statement (EIS), public comments on the draft EIS, and the proponent's responses to these comments in the Supplement to the draft EIS (the draft EIS plus the Supplement constitutes the final EIS). It also relies on information, comments and advice provided by Northern Territory Government agencies and previous studies undertaken in the region. The "final EIS" will be referred to throughout the document as "the EIS" unless distinction between the two documents is required.
A list of respondents to the draft EIS and issues raised in these submissions are provided in Appendix 1 and Appendix 2.
1.1 Environmental Assessment Process
Environmental impact assessment is based on adequately defining those elements of the environment which may be affected by a proposed development, and on quantifying the significance, risks and consequences of the potential impacts of the proposal at a local and regional level.
The EIS provides a description of the existing environment in the area and the proposed operations, and evaluates the environmental impacts and proposed mitigating measures to minimise the expected impacts.
This report will assess the adequacy of the EIS in achieving the above objectives, and will evaluate the undertakings and environmental safeguards proposed by the proponent to mitigate the potential impacts. Further safeguards may be recommended as appropriate.
The safeguards may be implemented at various levels within the planning framework of a project. These include, but are not limited to:
- Site selection;
- Design and layout of facilities;
- Management of construction activities;
- Processes used in operations and facilities (ie. inputs and outputs); and
- Management of operations, processes and facilities.
The contents of this report form the basis of advice to the Minister on the environmental issues associated with the project.
1.2 Environmental assessment history
Phillips Oil Company Australia (the proponent) lodged a Notice of Intent (NOI) with the Department of Lands, Planning and Environment (DLPE) on 19 September 1996, proposing the LNG Plant and Pipeline. The NOI was examined by the Environment Protection Division (EPD) of the DLPE. It was considered that the environmental issues associated with the proposal were of enough significance to warrant formal assessment under the NT Environmental Assessment Act 1982 at the level of an EIS.
The Minister accepted the EPD's recommendation and on 18 November 1996 directed that an EIS be prepared for the proposal. The Minister also determined that, as the proposal included some development in Commonwealth waters, a joint assessment between the Northern Territory and the Commonwealth should be conducted, with the Northern Territory as the lead assessment agency. The project was subsequently designated by the Commonwealth Minister for the Environment in June 1997, thereby requiring assessment under the Commonwealth Environment Protection (Impact of Proposals) Act 1974. The Commonwealth agreed that the NT should be lead agency.
Draft guidelines for the preparation of a draft EIS were advertised for public comment and circulated to NT Government advisory bodies and to Environment Australia (Commonwealth Department of Environment) for comment on 22 November 1996. Final guidelines were prepared taking into account the comments received from the public and government agencies. The Minister issued the final guidelines and a direction to prepare the EIS to the proponent on 19 December 1996.
The draft EIS was submitted on 28 July 1997 and placed on public review for 8 weeks from 2 August to 29 September 1997. It was also circulated to government advisory bodies for review and comment. Ten public submissions were received and forwarded to the proponent upon receipt. Comments from advisory bodies were consolidated into one NT Government submission and forwarded to the proponent at the close of the public review period. The Commonwealth Government submitted comments at the same time. The proponent prepared a Supplement to the draft EIS addressing the issues raised by the public and the NT and Commonwealth Governments.
The Supplement was submitted to DLPE and Environment Australia on 14 January 1998 and circulated to NT Government advisory bodies for review and comment. Their comments, and the issues raised in the public submissions, have been taken into account in the preparation of this report. Environment Australia has prepared a separate assessment report under the Environment Protection (Impact of Proposals) Act 1974. The NT Government has consulted with Environment Australia during the preparation of this report to ensure that a common approach has been taken to assessment issues, conclusions and recommendations.