- State Agreement for onshore gas project to be terminated by mutual agreement
- Joint venture parties to await outcome of independent inquiry into fracking
The Western Australian Government has introduced legislation into State Parliament to terminate a State Agreement governing natural gas exploration and potential production in the Kimberley's Canning Basin area.
The State Government, Mitsubishi Corporation and Buru Energy have mutually agreed to terminate the Natural Gas (Canning Basin Joint Venture) Agreement Act 2013.
The purpose of the original State Agreement was to provide enhanced certainty of tenure over five exploration permits in the Canning Basin, with Mitsubishi and Buru intending to jointly develop a domestic gas project.
Earlier this year, the companies restructured ownership of the exploration permits covered by the State Agreement and intend to proceed separately with projects in the region.
The Termination Agreement allows for Mitsubishi and Buru to retain ongoing security of their tenure. The companies have agreed to await the outcome of the independent scientific inquiry into hydraulic fracture stimulation.
No fracking will be conducted while the fracking moratorium is in place.
Comments attributed to Premier Mark McGowan:
"The State Government appreciates there is a level of community concern around fracking in WA, which is why we are commissioning an independent scientific inquiry, and have implemented a State-wide moratorium.
"We have been working closely with Mitsubishi Corporation and Buru Energy to ensure compliance with the moratorium, while awaiting the outcome of the review.
"The termination of this State Agreement allows both companies to pursue their own commercial interests."