A controversial gas project that former prime minister Scott Morrison knocked back during his secret takeover of the resources portfolio is a step closer to being rejected outright, following a preliminary decision from the industry minister.
Asset Energy Pty Ltd has applied to renew an exploration licence for 4,500 square kilometres offshore from Manly in the south to Newcastle in the north.
The project — called Petroleum Exploration Permit 11 or PEP-11 — would see a drilling rig built 26 kilometres south-east of Newcastle, which the company said would not be visible from land.
A decision on PEP-11 has been delayed by court action, after it was revealed Scott Morrison had secretly sworn himself into the resources portfolio in 2021 so he could overrule his then-resources minister Keith Pitt and reject the application.
Then-prime minister Scott Morrison intervened in the project in 2022, after he swore himself into the portfolio of resources minister. (ABC News: Ian Cutmore)
The decision was then handed to a joint authority of the New South Wales and Commonwealth governments, including Industry Minister Ed Husic, who on Wednesday released a short statement saying the project should be rejected.
“I have carefully considered all material submitted by Asset Energy Pty Ltd and formed a preliminary view that the applications should be refused,” Mr Husic said.
“As part of the ordinary fair process I have given Asset Energy an opportunity to provide further information to address concerns that I currently hold about the applications.
“This gives Asset Energy an opportunity to address my concerns before any final decision is made.”
Fierce opposition to the project
The gas exploration project has been strongly rejected by community groups and local independent MPs. It was also opposed by the Albanese government during the last election campaign.
The New South Wales government has also introduced laws to ban gas exploration and drilling off the coast, but PEP-11 is in Commonwealth waters.
When it came to light that Mr Morrison had installed himself as joint resources minister to reject the project, Asset Energy took legal action in the Federal Court.
The Albanese government and Asset Energy agreed last year to end that court action, asking the court to vacate Mr Morrison’s decision.
The gas exploration project has been strongly rejected by community groups and local independent MPs. (ABC Newcastle: Bindi Bryce)
The court found Mr Morrison had shown “bias” in his decision-making.
Resources Minister Madeleine King recused herself from making a call on PEP-11 and handed responsibility to Mr Husic earlier this year, following her strong criticism of the project while in opposition.
Independent MP for Mackellar, Sophie Scamps, said Mr Husic’s preliminary rejection of PEP-11 was hard fought.
“After years of fighting the oil and gas project proposed off the Sydney to Newcastle coast we are now close to victory,” she said.
“This project poses unreasonable risks to the environment, to marine life and to other activities, such as tourism, that depend on our pristine coastline and now the federal government has acted.”
Asset Energy has been contacted for comment.
The company has 30 days to respond to the minister’s refusal statement.
