Albanese government issues ‘preliminary refusal’ of Pep11 gas project previously vetoed by Scott Morrison | Business

The industry minister, Ed Husic, has issued a preliminary refusal of the contentious Pep11 offshore gas project proposed for the New South Wales coast, a month before the federal government was due to file its court defence in a legal action designed to force it to make a decision.

Husic issued a short statement on Wednesday, saying he had “carefully considered” all material that proponents Asset Energy Pty Ltd had provided and “formed a preliminary view that the applications should be refused”.

“As part of the ordinary fair process I have given Asset Energy an opportunity to provide further information to address concerns that I currently hold about the applications,” Husic said in the statement.

“This gives Asset Energy an opportunity to address my concerns before any final decision is made.”

He gave no detail on the basis for his interim decision.

Asset Energy now has 30 days to respond.

The company began proceedings in the federal court on 5 August, alleging that the Commonwealth-NSW Offshore Petroleum Joint Authority has breached an implied duty by failing to make a decision on two pending applications relating to its number 11 Petroleum Exploration Permit (Pep). It wanted the court to compel a decision within 45 days.

The commonwealth was due to file its response by 14 October.

Asset Energy has held the Pep11 exploration permit since 1999 and it was renewed in 2012.

In 2019, Asset Energy applied to vary the permit, seeking extra time to drill an exploration well and a change to the kind of surveying required. The application was accepted in January 2020. It applied again a year later for another extension, citing delays due to the Covid-19 pandemic. That application was accepted in February 2021.

Two months before the 2022 federal election, the then prime minister Scott Morrison vetoed the project. Not known publicly until after the election, he had secretly taken administrative power over five extra portfolios, including industry, science and resources.

The company challenged the decision and in a ruling handed down after the election, the federal court ordered the new Albanese government to remake it.

Husic inherited that responsibility after the resources minister, Madeleine King, recused herself earlier this year. King had made public pre-election comments criticising the Pep11 project.

Announcing his interim decision, Husic said he would carefully consider any further information Asset Energy provided.

“The Australian government is committed to considering the applications in accordance with due process under the Offshore Petroleum and Greenhouse Gas Storage Act 2006.”

The independent MP for the Sydney northern beaches seat of Mackellar, Sophie Scamps, welcomed Husic’s announcement as a sign that opponents of the project were “close to victory”.

“This project was roundly rejected by the millions of people who live along the coast between Sydney and Newcastle, including the people of Mackellar,” Scamps said.

The independent MP Zali Steggall posted on social media that the local communities “have had enough of waiting”.

“From Manly to Newcastle there is huge opposition to Pep-11,” Steggall wrote. “I hope this will soon be resolved without any further delay and that Pep-11 is put to bed once and for all.”

Asset Energy has been contacted for comment.