The move comes after the ACCC warned the east coast could face gas shortages from 2027—a year earlier than initially forecast.

Related article: Gas supply warning clouds reality, analysis says

Australia produces more gas than it needs to meet its domestic supply, but most is contracted for export.

“As ageing coal generation comes offline in coming years, gas will continue to be needed to firm renewable energy generation and as a backup during peak energy use periods,” the minister said in a statement.

Permits will be finalised for Esso and Beach Energy in the Otway and Sorrell Basins, with any discovered gas to support the domestic market.

Exploration permits will also be finalised for Chevron, INPEX, Melbana and Woodside Energy on Australia’s west coast, supporting energy security in Western Australia. In addition, 10 permits will be finalised for carbon capture and storage exploration.

King said the finalisation of offshore exploration permits does not automatically allow new offshore gas production to occur.

“Separate and extensive safety and environmental approvals are required through Australia’s independent National Offshore Petroleum Safety and Environmental Management Authority,” the minister said in a statement.

The news drew ire from environmental groups, with Greenpeace Australia calling the decision “a step backwards”.

The Australia Institute also levelled criticism over the decision.

Principal advisor Mark Ogge said, “This government was elected to take action on climate change and reduce emissions, but they are opening new fossil fuel projects instead.

“Expanding Australia’s gas production in the middle of a climate emergency is not just short-sighted: it treats our Pacific Island neighbours and future generations with contempt.

Related article: Flexible gas backs record demand in NEM during chilly winter

“Sea dumping is a failed technology that is now little more than a delaying tactic for the fossil fuel industry. The fact that these permits are being issued to major fossil fuel companies, so that they can supposedly offset their emissions from other highly polluting projects, is a farce of the highest order.

“This has nothing to do with supporting renewables, it is about producing more gas for export.”

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The consideration for the transaction is an all-cash payment of approximately $1.8 billion.

Related article: Woodside leads carbon capture startup’s $10M capital raise

“The acquisition of Tellurian and its Driftwood LNG development opportunity positions Woodside to be a global LNG powerhouse,” Woodside CEO Meg O’Neill said.

“It adds a scalable US LNG development opportunity to our existing approximately 10Mtpa of equity LNG in Australia. Having a complementary US position would allow us to better serve customers globally and capture further marketing optimisation opportunities across both the Atlantic and Pacific Basins.

“The Driftwood LNG development opportunity is competitively advantaged. Woodside expects to leverage its global LNG expertise to unlock this fully permitted development and expand our relationship with Bechtel, which is the EPC contractor for both Driftwood LNG and our Pluto Train 2 project in Australia.

“Through this acquisition, we are delivering on our strategy to thrive through the energy transition. Woodside believes that LNG will play a key role in the energy transition and is well positioned to deliver the energy the world needs while delivering significant value to our shareholders.”

Driftwood LNG is a fully permitted, pre-final investment decision (FID) development opportunity located near Lake Charles, Louisiana. The current development plan comprises five LNG trains through four phases, with a total permitted capacity of 27.6Mtpa.

The foundation development includes Phase 1 (11Mtpa) and Phase 2 (5.5Mtpa). Woodside is targeting FID readiness for Phase 1 of the Driftwood LNG development opportunity from the first quarter of 2025.

Related article: Woodside’s climate plan rejected by shareholders at AGM

Under the proposed transaction, Woodside will acquire 100% of the issued and outstanding shares of common stock of Tellurian Inc. Tellurian’s Board of Directors has approved the transaction and has recommended that its shareholders approve the transaction. The transaction is targeting completion in the fourth quarter of the 2024 calendar year.

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Related article: Lochard to study underground hydrogen storage in Victoria

Australia’s energy market continues to experience significant change with the uptake of renewables and the progressive closure of coal fired assets. Snowy Hydro helps manage intermittency in the National Electricity Market (NEM) through its portfolio of power stations including the Snowy Scheme.

The long-term Lochard storage deal will allow Snowy Hydro to utilise stored gas when required to operate its gas fired power stations.

Snowy Hydro CEO Dennis Barnes said, “Snowy Hydro’s generating portfolio of hydro, pumping and gas fired power stations continues to support further deployment of renewables into the grid by ‘firming’ intermittent generation sources into reliable power. The gas storage agreement with Lochard Energy will support the operation of our gas-fired power stations in Victoria.”

Lochard CEO Tim Jessen said, “This important agreement will underpin Lochard’s Heytesbury Underground Gas Storage project through which we will further expand the Iona Gas Storage Facility to continue to provide critical energy storage services in Victoria.”

Gas storage is essential to ensure the supply of gas to meet peak electricity demand in seasonal markets, to supply gas to peak power generators including Snowy Hydro, and to ensure security of supply in the event of supply disruption.

Snowy Hydro owns and operates three gas-fired power stations, strategically located in the LaTrobe Valley and Laverton in Victoria, and at Colongra, NSW.

With a current total generating capacity of 1,290MW. Snowy Hydro is also constructing a 660MW gas fired power station at Kurri Kurri in the Hunter Valley.

Related article: Snowy 2.0’s Florence proving a real stick-in-the-mud

The Lochard Energy gas storage agreement will commence in January 2028.

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The funding round was led by local and global leaders in energy, construction and chemical manufacturing including Woodside Energy, Cemex Ventures, and a major petrochemical company.

Related article: Yes, carbon capture and storage is controversial—but it’s going to be crucial

Founded in 2021, KC8 provides essential, yet hard to decarbonise, industries such as cement, steel, power generation and chemical production with a lower-cost, and lower potential environmental impact CO2 capture technology compared to conventional amine-based processes.

Its technology can capture up to 95% of carbon dioxide (CO2) emissions from heavy industrial sources at a capital cost up to 50% lower than amine-based solutions and at an improved energy efficiency of up to 15%.

Traditionally, the Carbon Capture, Utilisation and Storage (CCUS) industry uses amine-based solvents on these hard-to-abate industries. KC8 has developed a proprietary non-toxic solvent that’s derived from a naturally-occurring material. This allows KC8’s technology to treat low pressure, high volumes exhaust gases at lower cost to help these industries meet their net zero targets.

Woodside vice president carbon solutions Jayne Baird said KC8 technology had the potential to assist Woodside’s efforts to reduce emissions from its operations.

Related article: Woodside launches carbon capture and utilisation pilot

“As a global energy company, we understand the need to innovate and develop efficient and cost-effective ways to produce safe, lower carbon, affordable and reliable energy through the energy transition,” she said.

“We want to ensure we enable the technological innovation required to do this.”

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AEMO flagged possible supply shortages on peak demand days in Victoria until the end of September due to tight market conditions caused by cold weather and production issues at Longford gas plant, which in turn have depleted storage levels in eastern Australia. The market operator called for new gas supplies to address supply gap risks.

Related article: ACCC: Gas shortfall less likely as supply outlook improves

However, IEEFA’s analysis suggests that there is no need for the development of additional gas supplies, either to meet export demand or to address supply gaps. Further, the analysis shows that there are profitable options to reduce gas demand in the southern states that would not only address the risks of supply gaps but would also reduce household energy bills. These would add further momentum to already declining gas demand on the east coast.

Average daily gas consumption on the east coast dropped 13% from FY2012-13 to FY2022-23 (to 1,483TJ/d), and has fallen further in the first nine months of FY2023-24 (to 1,257TJ/d). Declining use of gas for power generation has dragged overall gas consumption in eastern Australia down over the same period (Figure 1).

“While AEMO forecast supply gaps, in reality there is no shortage of gas on the east coast given that about 80% of gas produced in eastern Australia is either exported via the LNG plants in Queensland or used to freeze that gas for export,” says the report’s author Kevin Morrison, IEEFA energy finance analyst, Australian LNG/gas.

Figure 1: Eastern Australia gas consumption

Most of the LNG produced in eastern Australia is supplied under long-term LNG export contracts, which are set to expire in the mid-2030s.

Geoscience Australia estimates that 2P reserves at Queensland’s coal-seam gas (CSG) fields are sufficient to cover the existing LNG contracts for the three Gladstone plants and beyond, until 2040, when operators such as Santos aim to be net zero in their upstream operations.

Declining southern gas production explains the tightness in eastern Australia’s gas market given most domestic demand is in Victoria. Tight market conditions have been exacerbated by unplanned maintenance this year at the Longford gas plant, which processes gas from the Gippsland Basin.

Production in Queensland, which has emerged as a major gas supply source over the past decade due to development of its CSG fields, is starting to plateau. Output at three of the five largest CSG fields in the state has fallen by 20-34% since 2019.

“The decline in three of Queensland’s largest CSG fields means new supply is unlikely to be as prolific as the most profitable fields tend to be developed first, followed by the less economic fields,” Morrison says.

The Australian government estimates that new supplies from undeveloped CSG fields in Queensland’s Surat Basin would cost A$11.64/GJ delivered to Melbourne, well above historical price levels.

Other areas hailed as potential new sources of gas by the industry will be even more expensive. Gas from the undeveloped Narrabri fields northern NSW would cost an estimated A$13.50/GJ delivered to Melbourne, and A$14.97/GJ from the Northern Territory’s undeveloped fields.

Related article: AEMO says renewables “the most efficient path” to net zero

“These new sources of gas will push up gas prices, further contributing to already challenging market conditions for commercial and industrial gas users,” Morrison says.

“At these price levels, we are likely to see further demand destruction and offshoring of Australian manufacturing.”

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The Climate Council’s new report, Powering Past Gas: An Energy Strategy that Works, says Australia does not need new gas projects as the world will shortly be awash with cheap gas at the same time as this fossil fuel will play a shrinking role in our domestic energy mix and that of overseas trade partners like Japan.

Related article: Australia’s Future Gas Strategy backs long-term gas drilling

Climate Councillor Greg Bourne said, “More gas means more harmful climate pollution, endangering our homes and the places we love and putting our kids’ futures at risk. It’s time for Australia to power past gas and turbocharge our switch to clean energy.

“Gas has a small, shrinking and short-term role to play in our energy mix. We can already meet much of our energy needs with renewables, like solar and wind. If we stopped exporting so much gas, current projects would be enough to supply our domestic gas needs for more than 60 years.”

Climate Council senior researcher Dr Wesley Morgan highlights the global shifts in energy consumption: “The global energy landscape is rapidly changing. Nations that have traditionally purchased Australian gas, such as Japan, South Korea, and China, are moving to renewables to slash their climate pollution. As we approach 2030 and these countries embrace clean energy, their demand for gas will decline, which means Australian gas expansion is a recipe for economic and environmental chaos.

“Australia must respond to these global shifts or risk being left behind. With new gas projects in the US and Qatar producing massive amounts of new gas, at much lower costs, it’s highly unlikely that new Australian gas projects will be profitable.

Related article: Oil and gas giant Santos just copped a large fine. Here’s why.

“Australia should take control of our own energy and economic future as these global trends accelerate. Now is the moment for Australia to start a sensible phase-out of gas exports as we ramp up the clean alternatives that the Albanese Government has put at the heart of its Future Made in Australia plans.”

The Powering Past Gas report offers a powerful alternative plan to the government’s Future Gas Strategy by advocating for a strategic phase-down of gas exports, accelerated electrification at home and a proper domestic reservation policy that prioritises meeting Australia’s shrinking gas needs first.

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Analysts have identified a looming global LNG supply glut in the next few years, as a wave of investment in new production by low-cost suppliers comes online. Meanwhile, the map of LNG consumption is being redrawn, with demand among established major buyers of Australia’s LNG about to fall or already falling.

Related article: Santos slapped with $2.75M fine by energy regulator

IEEFA’s report, The Future of Australian LNG, examines how these shifts in the global LNG landscape will affect Australian producers and exporters. It presents an outlook where Australia’s LNG industry will go into decline amid tightening competition and slowing demand.

IEEFA lead analyst, Australian gas, and the report’s co-author Joshua Runciman, says: “It’s starting to seem a long time since Australia was the world’s largest LNG exporter.

“Between now and 2028, global LNG markets will see a staggering 40% increase in supply, driven by unprecedent investments in new capacity by low-cost suppliers such as Qatar. This will see the market flooded with cheap LNG, leaving Australia’s industry, with its relatively high costs, potentially struggling to compete and remain viable.

“At the same time, key buyers of Australian LNG such as Japan and South Korea are decreasing their LNG consumption as they diversify away from LNG. That leaves emerging markets as the main drivers of demand, but there is considerable uncertainty over how much demand growth we can expect there.”

The situation worsens moving into the 2030s, as the long-term sale and purchase agreements (SPAs) that account for about three quarters of Australia’s LNG exports begin to expire. Australia will face increasing competition to secure extensions on these contracts.

If it cannot do so, it will be forced to sell growing volumes of uncontracted LNG capacity into spot markets, where it will need to compete with LNG from Qatar as well as surplus LNG from portfolio players and major buyers.

IEEFA energy finance analyst, Australian gas and report co-author Kevin Morrison says, “Australian LNG producers are likely to become increasingly exposed to the LNG spot markets from 2030, which by then will be awash with uncontracted gas looking for end buyers.

“It’s widely expected, including by IEEFA, that future LNG spot prices will fall due to oversupply, which could lower the returns to any Australian LNG producers with exposure to spot markets. This could include contracted and uncontracted LNG volumes, with Santos having a contract with pricing based on the Asian LNG spot market price.”

These challenges, along with high capital costs, mean Australia is unlikely to see any new LNG projects reach final investment decision (FID), with for example the NTLNG project linked to the Middle Arm precinct having capital costs materially higher than the total cost of production from Qatar LNG. The development of new gas fields to backfill existing LNG trains could also be at risk, while existing LNG projects may also face cost pressures.

Moreover, tightening domestic supply conditions and a need to maintain social licence will likely see gas that could be exported increasingly diverted to the domestic market.

Related article: Australia’s Future Gas Strategy backs long-term gas drilling

As a result of all these factors, Australia’s export volumes are likely to decline in the coming years. This could lead to the mothballing of LNG and gas infrastructure before the end of its useful life, undermining the returns investors had initially anticipated. Early retirement of infrastructure would also bring forward decommissioning obligations, and substantial costs.

Runciman adds: “The overall picture that comes out of our research is that Australian LNG faces a gloomy future, with it now entering a period of sustained decline. It is vital that Australia shifts its focus to developing new export markets in which Australia is likely to have a comparative advantage.”

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South Australian oil and gas company Santos has been hit with a $2.75 million fine for breaching its record-keeping obligations.

The Federal Court ordered the fine for Santos Direct, a wholly owned subsidiary, for over 4,700 breaches of the National Gas Rules. The fine follows proceedings brought by the Australian Energy Regulator.

It’s not the first energy company the regulator has pursued recently for breaches to the gas rules. Last year, energy retailer EnergyAustralia and chemical company Incitec Pivot paid $406,000 and $223,000, respectively, for alleged infringements. Energy distributor Jemena also paid an infringement.

So, what are these rules? Why do the breaches matter?

Related article: Santos slapped with $2.75M fine by energy regulator

Of gas rules and record-keeping

The breaches themselves sound dense. They concerned the non-reporting of what are known as “renominations” for uncontracted gas in day ahead auctions, which are conducted to determine if there’s excess capacity in pipelines which can be sold.

The fossil gas used in homes and industries is transported around Australia largely by pipeline. To boost competition in the east coast gas market, Australian state and federal governments introduced the day ahead auction in 2019 to let companies bid for access to unused capacity in these pipelines.

Day-ahead nominations determine the transportation capacity available in gas pipelines available for auction. To make this auction possible, companies that have existing entitlements to capacity have to make a nomination a day in advance of when they intend to move gas from one location to another, specifying how much capacity they intend to use the next day. Any spare capacity is then made available in the auction.

Renominations occur after the cut-off times on a gas day and they vary an earlier nomination for the use of transportation capacity.

Renominations can only be made in limited circumstances for specific reasons. Recording renominations is important because variations can affect auction prices if, for example, there ends up being less capacity so that participants pay more than they needed to.

Santos admitted it failed to make contemporaneous records for material gas renominations across six different gas auction facilities in breach of the National Gas Rules.

The Federal Court held that while the breach was not intentional and arose from inadequate internal compliance mechanisms, the significant penalty was necessary. It took account of the multiple reporting breaches, as well as the size and financial position of Santos, whose net profit from 2019 to 2022 ranged between $720 and $894 million per year.

Justice Penelope Neskovcin noted compliant record keeping is a critical part of ensuring the integrity and capacity of the auction. Proper records allow the regulator to understand the nature and frequency of renominations, and in so doing, ensure it is able to properly monitor the market.

While no actual loss occurred, the court focused on the potential damage that could have occurred given this action could have meant participants paid more in the auction.

Related article: Santos wins Barossa gas battle against Tiwi Islanders

Why did the AER pursue this?

As the regulator states in its media release: Timely and accurate record keeping is crucial in allowing the AER to effectively monitor the compliance of participants in the capacity auction.

In particular, the AER’s role of investigating and enforcing provisions […] [prohibiting] participants from making false or misleading day ahead nominations may be significantly hampered without the benefit of compliant records of material renominations.

In her judgement, Neskovcin said the penalty should be a “deterrent” against such conduct. She separately stated: [t]he failure to comply with [the rule], which has a substantive role in protecting the proper functioning of the capacity auction, heightens the need for deterrence in respect of this conduct.

The court emphasised the public interest underpinning clear, transparent and compliant reporting in accordance with the requirements of the National Gas Laws. It noted that Santos, as a major Australian gas and oil exploration and production company making hundreds of millions of dollars in profits over the relevant period, had to take full responsibility for its contraventions.

Disclosure statement: Samantha Hepburn does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

Republished from The Conversation under Creative Commons

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Related article: Woodside finalises 10% Scarborough sale to LNG Japan

The agreement follows a memorandum of understanding signed by Woodside and JBIC in November 2022 aimed at securing a stable supply of energy for Japan and to assist in achieving its decarbonisation goals.

Woodside CEO Meg O’Neill said, “JBIC has supported all of Woodside’s milestone Australian projects including the North West Shelf, Pluto LNG and now Scarborough. It is therefore fitting that we have executed this agreement in the same week that
Woodside celebrates 35 years of secure and reliable LNG exports to Japan.

“Investment in new Australian LNG supply, like Scarborough, can help Japanese customers meet their energy security needs while also supporting regional decarbonisation goals.”

JBIC deputy governor Kazuhiko Amakawa said, “This loan will contribute toward securing long-term, stable supplies of LNG, which is an important energy resource for Japan.”

The Scarborough Energy Project is in on schedule for first LNG cargo in 2026.

The Scarborough project is opposed by environmental groups such as Greenpeace and the Australian Conservation Foundation (ACF).

“Woodside’s Scarborough project is a disaster for nature and a methane bomb waiting to be detonated,” ACF says on its website.

Related article: Australia’s Future Gas Strategy backs long-term gas drilling

ACF argues the Scarborough Project’s greenhouse gas emissions will have a significantly detrimental impact on the Great Barrier Reef.

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New modelling reveals that low-carbon concrete developed at RMIT University can recycle double the amount of coal ash compared to current standards, halve the amount of cement required and perform exceptionally well over time.

Related article: Coffee-boosted concrete is stronger, uses less energy

More than 1.2 billion tonnes of coal ash were produced by coal-fired power plants in 2022. In Australia, it accounts for nearly a fifth of all waste and will remain abundant for decades to come, even as we shift to renewables.

Meanwhile, cement production makes up 8% of global carbon emissions and demand for concrete—which uses cement as a key ingredient—is growing rapidly.

RMIT project lead Dr Chamila Gunasekara said this represented a significant advance as existing low-carbon concretes typically have no more than 40% of their cement replaced with fly ash.

“Our addition of nano additives to modify the concrete’s chemistry allows more fly ash to be added without compromising engineering performance,” Dr Gunasekara said.

Comprehensive lab studies have shown the team’s approach is also capable of harvesting and repurposing lower grade and underutilised ‘pond ash’—taken from coal slurry storage ponds at power plants—with minimal pre-processing.

Large concrete beam prototypes have been created using both fly ash and pond ash and shown to meet Australian Standards for engineering performance and environmental requirements.

“It’s exciting that preliminary results show similar performance with lower-grade pond ash, potentially opening a whole new hugely under-utilised resource for cement replacement,” Dr Gunasekara said.

Related article: AGL and SunDrive explore solar manufacturing at Hunter Hub

“Compared to fly ash, pond ash is underexploited in construction due to its different characteristics. There are hundreds of megatonnes of ash wastes sitting in dams around Australia, and much more globally.”

“These ash ponds risk becoming an environmental hazard, and the ability to repurpose this ash in construction materials at scale would be a massive win.”

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With Australia being one of the world’s largest exporters of liquefied natural gas (LNG),  Resources Minister Madeline King said gas would be needed “through to 2050 and beyond” in the global shift to cleaner energy.

Related article: Woodside’s climate plan rejected by shareholders at AGM

“It is clear we will need continued exploration, investment and development in the sector to support the path to net zero for Australia and for our export partners, and to avoid a shortfall in gas supplies,” she said.

The Future Gas Strategy involves six principles that will underpin government policy on gas:

• Australia is committed to supporting global emissions reductions to reduce the impacts of climate change and will reach net zero emissions by 2050.
• Gas must remain affordable for Australian users throughout the transition to net zero.
  New sources of gas supply are needed to meet demand during the economy-wide transition.
• Reliable gas supply will gradually and inevitably support a shift towards higher-value and non-substitutable gas uses. Households will continue to have a choice over how their energy needs are met.
• Gas and electricity markets must adapt to remain fit for purpose throughout the energy transformation.
• Australia is, and will remain, a reliable trading partner for energy, including LNG and low emission gases.

“Ensuring Australia continues to have adequate access to reasonably priced gas will be key to delivering an 82% renewable energy grid by 2030, and to achieve our commitment to net zero emissions by 2050,” Minister King said.

“The strategy makes it clear that gas will remain an important source of energy through to 2050 and beyond, and its uses will change as we improve industrial energy efficiency, firm renewables, and reduce emissions.

“But it is clear we will need continued exploration, investment and development in the sector to support the path to net zero for Australia and for our export partners, and to avoid a shortfall in gas supplies.”

The Climate Council labelled the government’s Future Gas Strategy as a regressive echo of the past.

Climate Council Head of Policy and Advocacy Dr Jennifer Rayner said, “[This] announcement is more Back to the Future than Future Made in Australia. Australia is already using less gas, so the suggestion we need more of it sounds like Scott Morrison’s gas led recovery’, not Anthony Albanese’s ‘renewable energy superpower’.

“More gas means more climate pollution and a more dangerous future, it’s that simple. The Albanese Government has a choice: cut climate pollution and seize the decade by scaling up clean energy, or support new gas projects. It can’t do both.

Related article: Climate Council and Sarah Wilson launch ‘I Quit Gas’

“The strategy seems to ignore forecasts of a global oversupply of gas and the government’s own plans to develop the workforce and supply chain for clean industries, which can power the next era of Australian prosperity if we go all in on them now.

“This can be Australia’s moment to start a sensible phase out of gas as we scale up the clean alternatives. More gas is a bad bet, against a safe climate future and a thriving clean economy.”

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According to Reuters, Australian Retirement Trust’s new rules exclude investment in any company that generates more than 10% of its revenue from the mining and sale of thermal coal.

Related article: Woodside faces backlash from super funds over climate plan

“As a global investor, Australian Retirement Trust is committed to achieving a net zero greenhouse gas emissions investment portfolio by 2050,” the company said in a statement.

“Australian Retirement Trust applies exclusions in limited circumstances as part of its sustainable investment approach in accordance with members’ best financial interest.”

The new rule does not bar thermal coal investments made indirectly via money invested with other fund managers. It also does not apply to metallurgical coal, used in steel making.

The move was welcomed by climate and environment advocacy groups, who said Australian Retirement Trust was the largest Australian pension fund to halt thermal coal investments.

“It’s a tribute to the thousands of members who have demanded greater climate action from the fund,” Market Forces superannuation funds campaigner Brett Morgan said.

The news comes as two of Australia’s biggest superannuation funds vetoed Woodside Energy’s climate plan at its AGM last week.

Related article: UniSuper commits $622M to Macquarie’s renewables fund

Aware Super said Woodside must address climate concerns in a way that protected shareholder value.

Australia’s largest superannuation fund, AustralianSuper, also voted against the plan, citing concerns over how Woodside would reach net zero emissions.

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Woodside chair Richard Goyder was re-elected despite at least one major shareholder saying it would vote against his re-election at the meeting.

Related article: Greenpeace takes Woodside to court over climate claims

“The board will seriously consider the outcome when reviewing our approach to climate change,” Goyder told shareholders.

“We take the shareholder feedback seriously.”

Two of Australia’s biggest superannuation funds said ahead of the meeting last week they planned to vote against Woodside Energy’s climate plan.

Aware Super said Woodside must address climate concerns in a way that protected shareholder value.

Australia’s largest superannuation fund, AustralianSuper, also said it intended to vote against the plan, citing concerns over how Woodside would reach net zero emissions.

Related article: Woodside faces backlash from super funds over climate plan

The news comes as environmental and conservation groups increase calls for Woodside to take more serious action on climate change, opposing the oil and gas giant’s reliance on carbon credits to help meet its emissions targets.

In 2022, nearly 49% of investor votes were against the company’s climate plan, with funds including HESTA, KLP and Allianz Global Investors voicing their opposition.

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Related article: Greenpeace takes Woodside to court over climate claims

As reported by Reuters, Aware Super, has voted against Woodside’s climate plan and the re-election of Goyder, who has said Woodside is addressing climate concerns but must do so in a way that protects shareholder value.

“This decision has not been taken lightly and is underpinned by our belief that climate change is one of the most significant financial risks to our portfolio,” Aware Super said in a statement.

Australia’s largest superannuation fund, AustralianSuper, also said it intended to vote against the plan, citing concerns over how Woodside would reach net zero emissions. It would, however, support Goyder’s re-election as chair.

The news comes as environmental and conservation groups increase calls for Woodside to take more serious action on climate change, opposing the oil and gas giant’s reliance on carbon credits to help meet its emissions targets.

In 2022, nearly 49% of investor votes were against the company’s climate plan, with funds including HESTA, KLP and Allianz Global Investors voicing their opposition.

Related article: UniSuper commits $622M to Macquarie’s renewables fund

Woodside’s AGM will take place at 10am (AWST) today.

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