Environmental watchdog to review new Kimberley gas project

The company behind a proposed gas project in Western Australia's Kimberley says it could meet the region's power demands with locally produced energy for the first time.

Buru Energy referred its Rafael conventional gas project to WA's Environmental Protection Authority (EPA) for review in early October.

The proposal involves developing a facility at the project site, located in the Kimberley's Canning Basin about 85 kilometres south of Derby, to process conventional gas from two co-located production wells.

Conventional gas is natural gas extracted using simple drilling and pumping methods, as opposed to unconventional extraction methods like hydraulic fracturing, or fracking.

Buru executive chairman David Maxwell said the Rafael project was the only proven conventional gas and liquids resource in the greater Kimberley region.

"At the moment, the Kimberley relies on imported energy … from Karratha, Perth, Darwin, and Asia," he said.

He said the Rafael project would improve energy security and be cost-effective, with reduced road traffic another potential benefit.

Up to 300 tonnes of Liquefied Natural Gas (LNG) would be produced at the Rafael plant per day — the equivalent of about 16 or 17 terajoules of energy — alongside LPG and condensate.

Mr Maxwell said the Kimberley used between six and 13 terajoules per day for power generation, with the amount varying based on the time of year.

"We'll also supply beyond the Kimberley into, for example, the northern Pilbara.

"In the case of LPG, we would be supplying in the order of a quarter to a third of the Kimberley's LPG demand."

Concerns over fracking

The West Australian government has banned fracking in over 98 per cent of the state, but this does not include parts of the Kimberley including the Canning Basin.

Earlier this year, WA's EPA recommended a fracking proposal by Black Mountain Energy subsidiary Bennett Resources go ahead subject to conditions.

The Valhalla Gas Exploration and Appraisal Program would see up to 20 exploration and appraisal wells drilled in the basin.

A record 8,000 appeals were lodged against the project.

When asked about the fracking proposal in Broome this month, WA Mines Minister Daniel Pastorelli said the method had drawn varied perspectives.

"I understand everyone has differing views on these types of things and I respect that completely," he said.

"Obviously our policy and our approach is based on science, and that is what we're doing when it comes to hydraulic fracturing."

Environmentalists have expressed concern Buru's Rafael project, although a conventional gas project, could pave the way for fracking to occur in the future.

Environs Kimberley executive director Martin Pritchard said Rafael "could be a Trojan horse for fracking".

"They (Buru) might be saying right now that they're not intending on fracking, but their statements to the ASX clearly say that they want to undertake fracking in the future," he said.

Buru's David Maxwell rejected the accusation.

"It's got nothing to do with fracking at all," he said.

"And if there was any fracking involved — and I stress there is not — that would be a separate [EPA] referral, a separate application and a separate approval process and we're not in that process at all."

The company previously used the hydraulic fracturing technique at its Yulleroo gas field also in the Canning Basin, but Mr Maxwell said it no longer did so.

"We do not currently practice hydraulic fracturing," he said.

"In the past Buru has, but Buru has put that on the shelf, and at the moment we have no plans for fracture stimulation."

Mr Pritchard said solar and batteries, rather than gas fields, were the way forward for cheaper and cleaner electricity in the Kimberley.

"What we need to be doing is ramping up renewable energy, and we need to do that as quickly as possible," Mr Pritchard said.

Mr Maxwell said Buru expected a decision from the EPA by the end of the year and hoped to produce the first gas by early 2029.