Approvals for the company’s Scarborough Project are being challenged in the Supreme Court.
The post Looking to buy Woodside shares? Here’s why the energy giant faces a fresh legal battle from climate activists appeared first on The Motley Fool Australia. –
The Woodside Energy Group Ltd (ASX: WDS) share price is in the red on Tuesday. Its slump comes amid news climate activists are challenging the company’s $17 billion Scarborough Project in the Supreme Court.
The Conservation Council of WA (CCWA) is challenging approvals for Pluto Train 2, saying pollution and environmental harm from resulting emissions wasn’t properly considered. Pluto Train 2 is a critical component of the project.
Woodside shares are trading at $32.39 at the time of writing, 1.37% lower than their previous close. For context, the S&P/ASX 200 IndexÂ (ASX: XJO) is down 0.46% right now.
Letâs take a closer look at the latest legal battle over the ASX 200 energy giant’s major project.
Woodside’s Scarborough Project back in court
Looking to snap up Woodside shares? The companyâs hitting headlines today after CCWA announced it’s challenging the WA Department of Water and Environmental Regulationâs approval of Pluto Train 2âs construction, handed down in May 2021.
Pluto Train 2 is a proposed expansion of Woodsideâs Pluto LNG gas facilityâs processing capacity.
CCWA claims the regulator failed to consider the expansion will nearly double the facilityâs emissions.
To save duplicating findings, an increase in emissions was instead considered by WAâs Environmental Protection Agency.
CCWA executive director Maggie Wood said governments and their departments have âa legal and moral dutyâ to protect Australia’s climate. Wood continued:
To avoid irreversible damage to our climate and protect the people of WA from the horrific effects of more droughts, floods, and bushfires it is vital that the long-lasting impacts of fossil fuel proposals are taken seriously and given the most stringent and careful regulatory assessment before decisions are made.
The Scarborough project still has several regulatory hurdles to clear.
It’s also the subject of a separate legal challenge brought by the Australian Conservation Foundation.
Woodside share price snapshot
Today’s slip hasn’t been enough to dint the Woodside share price’s longer-term gains.
The stock has lifted 48% since the start of 2022. It’s also 46% higher than it was this time last year.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.