WA Works

WA’s business community has welcomed the State environmental regulator’s approval of Black Mountain Energy’s (BME) exploratory Valhalla gas project in the West Kimberley.

Image: Black Mountain Energy

The Environmental Protection Agency (EPA) has recommended the State Government approve the company’s – a CCIWA Member – application to drill up to 20 wells over 112 hectares for a seven-year period.

“This encouraging step forward is a testimony to the company’s resilience, quality of work and commitment to the project,” said BME Chairman Rhett Bennett.

“I remain a strong believer in the vast resource development opportunity that exists in our EP371 permit in the Canning Basin.

“Our focus remains on progressing activity for the benefit of all stakeholders.”

The project, previously held by Buru Energy and Mitsubishi, is in the Canning Basin – Australia’s second-largest sedimentary basin. It has three existing wells and gas flows to the surface.

BME plans to target WA, interstate and overseas gas markets.

Project will deliver ‘clear’ economic benefits

CCIWA Head of Policy Dr Anthea Wesley said although the recommendation to approve test drilling was an early part of the process, it could pave the way for unconventional gas extraction to play a much bigger role in WA’s economy.

“Kick-starting an unconventional gas industry in WA would create well-paid and secure jobs in the Kimberley and drive the region’s economic development, which has long been overshadowed by the Pilbara,” she said.

“It would also have a clear economic benefit for the State and the nation, bringing in royalties and attracting more investment to WA.”

Wesley said expanding WA’s gas footprint would help shore up the State’s energy security.

Gas is a critical fuel to keep the lights on and industry operating during the energy transition, and WA has plenty of it – both onshore and offshore,” she said.

“This gives WA and Australia the significant strategic advantage of having affordable and reliable energy to power our industries and our communities.”

Environment risks are low, says EPA

The EPA’s decision was made after careful consideration, and with strict conditions to protect ground water.

“We consulted extensively during this environmental impact assessment,” said EPA Chair Darren Walsh.

He said the regulator was “satisfied … that any associated risks to the environment remain low, and that the conditions we have recommended, along with those imposed under other regulatory processes would ensure that any unforeseen or unpredicted impacts will be identified early in the process and avoided”.

The EPA’s report to WA Environment Minister Matthew Swinbourn is open for a three-week public appeal window, closing February 10.

The project is also under federal regulatory review.

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