NT EPA recommends stricter pollution rules for Santos and Inpex after emissions scandal

It could take up to 12 months before new licences are fully implemented if both companies endorse the 23 recommendations from the Northern Territory Environment Protection Authority (NTEPA). The regulator has recommended significant changes to the environmental licences of Darwin's two major gas processing companies, Santos and Inpex, following a review triggered by substantial under-reporting of toxic emissions.

The report, released on Friday, calls for pollution limits, limits on hot venting, and continuous monitoring of emissions. The review was launched after Inpex revealed it had drastically under-reported toxic emissions, including the carcinogen benzene, from its Ichthys LNG plant on Darwin Harbour. This sparked concerns that residents and workers could be breathing in harmful emissions.

What triggered the review?

In March, independent consultants found widespread failures in how Inpex calculated and reported emissions dating back to the start of production in 2018. Santos has also faced scrutiny over its Darwin LNG facility, where a leaking tank has released vast amounts of methane and there has been frequent flaring. The review follows months of criticism of the NTEPA's oversight and transparency from both members of the public and experts, including accusations the NTEPA has been 'asleep at the wheel'.

What does the NTEPA chairman say?

On Friday, NTEPA chairman Paul Vogel said the public should have confidence the regulator had their 'health at heart' and insisted the recommendations would not be watered down by the companies. Mr Vogel said while the review found the current environmental licences governing Santos and Inpex were among the strictest in the country, there was room for improvement.

He said the unusually close proximity of the facilities to Darwin city, around 6 kilometres away, and the likelihood of expansion 'means that we really should have a world-class regulatory regime in place that goes further than we currently have'.

'There's been independent health risk assessments conducted by the chief health officer to assure the community that their health is protected from [Inpex's] emissions,' he said. 'But we need to make sure that continues in the future, and there's a lot more transparency around reporting and availability of information from the company to the community.'

Why are environmental groups still concerned?

Environment Centre NT climate campaigner Bree Ahrens welcomed action from the regulator, but said there were still 'gaping holes in the recommendations' that would continue to put Darwin's air quality at risk.

'This review is an admission that the NT EPA's regulation of Inpex and Santos's toxic air pollution under the current licences has been alarmingly slipshod and needs to be fixed,' she said.

Ms Ahrens said it was concerning the recommendations did not limit flaring or put a cap on how long acid gas incinerators, anti-pollution systems that burn harmful gases at high temperatures before releasing them into the atmosphere, can be out of action. Instead, the review recommends they are 'operational' 99.5 per cent of the time.

'The effectiveness of this review will depend on its implementation,' she said. 'The gas industry has shown again and again it can't be trusted when it comes to our air quality and health. The NTEPA needs to hold the line and impose the strongest possible licence conditions, with real consequences for non-compliance.'

What other recommendations are included?

Other recommendations include expanding enforceable pollution limits, requirements to operate and maintain a 'high level' of pollution control equipment, and regular audits. Documents submitted to a 2024 Senate inquiry revealed Inpex's incinerators had been out of service for extended periods since 2019.

Mr Vogel said it could take up to 12 months before licences were fully implemented, if both companies endorsed the 23 recommendations. In a statement, Inpex senior vice-president Bill Townsend said the company was working with the Department of Lands, Planning and Environment to assess what the potential new requirements may mean for its operations. Santos has also been contacted for comment.