Valhalla Gas Project: EPA Recommends Approval for Kimberley Exploration

The Western Australian Environmental Protection Authority has recommended approval for a gas exploration project in the Kimberley region, subject to specific conditions—but the final decision remains pending.

Project Overview

The Valhalla Gas Exploration and Appraisal Program, submitted by Bennett Resources (a subsidiary of US-based Black Mountain Energy), targets a 3,700 square kilometer area within the Canning Basin, situated between Fitzroy Crossing and Derby. The proposed exploration wells would be located west of Fitzroy Crossing.

The proposal involves drilling up to 20 exploration and appraisal wells near the Martuwarra Fitzroy River, drawing both industry support and environmental opposition.

If exploration yields favorable results, the company has indicated plans to proceed with full-scale production to extract an estimated 420 billion cubic meters of gas. This stage would require drilling additional wells into various aquifers, alongside constructing:

• Roads
• Gas processing plants
• Wastewater ponds
• Water treatment plants
• Compressor stations
• Pipelines

A new pipeline extending approximately 1,000 kilometers to Karratha could be required.

Regulatory Process

The EPA's recommendation is not a final approval. The report is subject to a three-week public appeal period, with appeals directed to the Office of the Appeals Convenor. Western Australia's environment minister will make the final decision on the proposal. The project also requires federal government approval.

Western Australian Premier Roger Cook clarified that the EPA's recommendation indicates that "the Valhalla Project's environmental impacts can be managed"—rather than representing definitive approval for fracking in the Kimberley.

Key Regulatory Context

• Moratorium lifted: The ban on fracking in Western Australia was lifted in 2018, following a state Inquiry into Hydraulic Fracturing.
• Protections outlined: The government outlined 20 protections to be implemented, with half reportedly completed.
• Restricted area: The WA government notes that fracking is prohibited in 98% of the state, with the remaining 2% covering parts of the Kimberley region.

Environmental Assessment

The EPA report recommends mitigation measures to address environmental risks, particularly for groundwater protection. EPA chair Darren Walsh stated that recommended conditions, alongside other regulatory processes, would ensure early identification and avoidance of unforeseen impacts.

Technical Details

According to project documentation, fracking rigs would:

1. Drill 2–5 kilometers deep into rock
2. Shift to a horizontal orientation
3. Force megaliters of fresh water, sand, and chemicals under high pressure into rock layers to create fractures

This process can be repeated up to 70 times per well. Some proposed wells are located within 2 kilometers of significant tributaries of the Martuwarra Fitzroy River system.

Perspectives

Industry Position

The Chamber of Minerals and Energy WA supported the EPA's recommendation. Chief executive Aaron Morey cited the importance of accessing gas reserves to manage energy costs. The organization referenced a 2018 Independent Scientific Panel Inquiry that concluded low risks associated with hydraulic fracturing in Western Australia.

Government Position

Premier Roger Cook has stated that Western Australia might face a projected gas shortfall if Woodside Energy's $30 billion offshore Browse project is not developed.

Cook referenced a "Browse-sized hole" in future energy needs, asserting that renewables cannot replace gas for household and industrial demand. Deputy Premier Rita Saffioti stressed the need for planning to ensure gas supply beyond 2032.

Environmental Groups

Environmental organizations have raised concerns regarding potential impacts on the region's habitat and water resources.

• Conservation Council executive director Matt Roberts argued the state has a gas export problem, not a supply problem, and urged stronger enforcement of the gas reservation policy.
• Greens MP Sophie McNeill called the premier's comments "environmental blackmail."
• Martin Pritchard, Environs Kimberley executive director, urged the federal government to conduct a rigorous assessment.
• Bunuba traditional owner Millie Hills and Nyikina woman Pat Riley voiced opposition, advocating for a ban on fracking in the Martuwarra Fitzroy River catchment.
• The Martuwarra Fitzroy River Council and the Kimberley Land Council have publicly rejected both the Valhalla proposal and the EPA's assessment of low cultural risks.

Independent Analysis

Energy analyst Kevin Morrison described the premier's framing as an "oversimplification," noting logistical challenges for fracking in the region and advocating for better enforcement of gas reservation rules.

Scientific Considerations

An independent federal scientific committee on onshore gas and coal identified risks to threatened species from ecological disturbance and potential chemical contamination. Evidence from the United States, Canada, and Australia has documented findings of harm to populations living near fracking operations, including risks to:

• Water quality
• Air quality
• Human health outcomes

Broader Context

• Industry withdrawals: Major oil and gas companies previously withdrew interest in the Canning Basin due to substantial infrastructure costs.
• Browse project hurdles: Woodside's Browse project faces environmental and financial hurdles, with the federal environment minister's approval for the North West Shelf Project extension being challenged in court.
• Gas reservation policy: WA's policy requires 15% of gas for domestic use, but compliance is reportedly below half that target.

Next Steps

The Office of the Appeals Convenor has reported an unprecedented number of appeals filed.

Western Australia's environment minister will make the final decision on the proposal, which also requires federal government approval.