Get all your news in one place.
100’s of premium titles.
One app.
Start reading
ABC News
ABC News
Business

Buru Energy investigates potential for floating liquefied natural gas facility in the Kimberley

Locals protested heavily when Woodside proposed a gas hub in the Kimberley more than a decade ago. (Supplied: Environs Kimberley)

Ten years after a conflict between traditional owner groups and an international mining company in the Kimberley, an oil and gas giant is looking into establishing a floating liquefied natural gas facility in the region.

Buru Energy found sizeable oil and gas deposits in the Canning Basin in 2019, around 80 kilometres south-east of Broome, later acquiring 100 per cent ownership of the discovery dubbed "Rafael".

A pre-feasibility study has since found a floating liquefied natural gas facility anchored off the Kimberley coast could be a timely and cost-effective way to process and export the resource from the Canning Basin.

The James Price Point protests in 2013 prompted resources company Woodside to abandon a similar proposal to construct gas refineries in the area, around 50 kilometres from Broome. 

Proposed gas refineries at James Price Point divided locals.  (Supplied: Damian Kelly )

Traditional owners and environmentalists pushed to protect the culturally significant site and its native plants and animals.

But the conflict divided locals.

Martin Pritchard, director of strategy at conservation group Environs Kimberley, said the plan could re-ignite protests in the region following the recent ten-year anniversary of the Woodside stoush.

"People in the past have felt strong enough to protest against this kind of development," he said.

"More people would be getting involved and standing up to protest against this kind of industrialisation."

Western Australia makes up 63 per cent of the national mineral exploration expenditure and in 2022 LNG production was valued at a record-breaking $51 billion, almost $24 billion more than the previous year.

Mr Pritchard said he was concerned the tourism industry would take a hit if the development went ahead. 

Martin Pritchard believes new Kimberley gas projects could spark conflict.  (ABC Kimberley: Andrew Seabourne)

"What we're talking about here is a project that could mean industrialising the Kimberley coast," he said.

"It's a really special place, it's globally renowned and what we should be doing is looking after it.

"We don't think that this is the kind of development that fits in with the world-class landscapes of the Kimberley and the million-dollar tourism industry."

Protests prompted Woodside to abandon its proposed gas project at James Price Point. (Supplied: Damian Kelly)

Buru backs study

In a statement, Buru Energy chief executive Thomas Nador said the pre-feasibility study was a "significant step forward in the commercialisation pathway for Rafael."

"The development concept is compelling, and work will continue to further refine the concept and progress commercial discussions," he said.

The study suggested a floating facility off the coast of the Kimberley connected to onshore pipelines was one of several options the company could use to export gas.

Mr Nador said other studies were ongoing.

"Buru is also examining and screening other development options," he said.

Buru Energy are investigating a range of options to exploit the region's gas resources. (ABC Kimberley: Ben Collins)

"These include local, Kimberley-based power generation, smaller-scale liquefied natural gas production, downstream petrochemical processing projects and the potential to process Rafael gas for export via the North-West Shelf facilities.

"This work will ensure that there is a commercially attractive monetisation pathway for Rafael gas and condensate across the full range of contingent resource volumes."

Mr Nador said further geological investigations would take place this year.

An opportunity for local jobs

Broome Chamber of Commerce chief executive Sharni Foulkes said gas and oil industry development could be positive for the region's economy. 

"When I hear that, I hear job creation, opportunities for small businesses, future industries and economic viability," she said.  

Broome Chamber of Commerce and Industry chief executive Sharni Foulkes. (ABC Kimberley: Tallulah Bieundurry)

"I think a prime example of how this could work successfully … is with the Djarindjin Airport that's already supplying oil and gas platforms off the Kimberley coast.

"The chamber wants to see sustainable business opportunities for local people."

She said more investigations would be needed to compare environmental impacts and economic opportunities.

"I feel these studies have always got very measured responses and very planned strategic outcomes," Ms Foulkes said.

"It's going to be really hard to draw a line there, and see how the positive and the negative impacts outweigh one another." 

No application submitted yet

A Department of Mines, Industry Regulation and Safety (DMIRS) spokesperson said Buru Energy was yet to submit an application for a floating facility.

"Should Buru Energy progress a FLNG plant or any other avenue to commercialise its Kimberley-based project, DMIRS will assess the plans under the relevant legislation," they said.

"The department's oversight, along with that of other government agencies, ensures resource companies are compliant with the regulatory requirements for projects they intend to develop."

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.