20-year gas leak branded “a national scandal”

A methane gas leak, which had been allowed to drag on for two decades at a Darwin gas terminal, has been branded a “national scandal”.

The ABC exposed the leak at the giant liquefied natural gas tank known in Darwin as “the giant esky”, following a long-running investigation earlier this month.

The report revealed that the leaking tank – which had been operated by Conoco Phillips and subsequently sold to Santos – is the result of a design fault dating back to its construction in 2006.

Back then, it was lauded as the world’s largest above-ground tank.

Mark Ogge, Principal Advisor to The Australia Institute, says the story confirms long-held concerns that Australia’s methane emissions are grossly underestimated, and regulators have been “captured by the gas industry”.

“The reporting confirms that despite all relevant regulators and governments knowing about the leaks, the emissions will continue to go unreported and will not be included in Australia’s greenhouse gas reporting. Incredibly, Santos will be allowed to use the leaking tank until 2050 without fixing it.”

“The Northern Territory EPA (NTEPA), the CSIRO, the Clean Energy Regulator (CER), the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA), and NT WorkSafe all knew about the leak – and did nothing.”

In an article published the following day in The Conversation, Professor Melissa Haswell from the Queensland University of Technology said the case “demonstrates dangers of relying on industry to assess and manage risks to the climate and human health.”

“State and federal authorities reportedly approved Santos’ controversial 25-year Barossa offshore gas project without requiring the leak to be repaired or replaced,” Prof Haswell wrote.

It’s understood that the tank is now empty but has not been repaired. It will reportedly be refilled by Santos soon.

Mr Ogge says Santos will receive all the gas from the Barossa gas field that will feed its leaking terminal for free, as the Australian government will not charge it royalties.

He says it is also unlikely to pay Petroleum Resource Rent Tax and, according to the most recent AT0 Corporate Tax Transparency data, Santos LTD has paid virtually no company tax since 2016.

“This cover-up is a national scandal. It confirms that Australia’s key regulators are either grossly incompetent or have been captured by the gas industry, or both,” he said.

“That there are no consequences for gas companies failing to act on a major leak of methane for 20 years, and the Australian and NT governments are allowing Santos to keep using the leaking tank without fixing it, or even monitoring it properly, is a disgrace. The system is utterly broken.

“Santos will get all the gas they export from Darwin LNG free and probably pay no PRRT or company tax either. The idea that it can’t afford to fix the leak is laughable.”