The announcement also signalled progress for the development of the Kipper Gas Field, which a consortium of Esso, BHP Billiton, Woodside and Santos agreed to develop in August 2005. Gas from the field would be processed at the proposed plant.

The plant would be located to the immediate east of the existing Longford Gas Plant and would involve construction of a gas processing plant, as well as connections to the existing offshore pipelines and connections to the existing Longford Gas Plants.

Victorian Minister for Planning Justin Madden said that after careful consideration and advice from the Minister for Environment and Climate Change and the Minister for Energy and Resources, he was satisfied that an EES would not be required for the project.

“The proposed site for the plant consists of cleared agricultural land with no landscape, biodiversity, cultural heritage or water body features of established environmental significance," said Mr Madden.

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While the approval has gained some criticism, based on the level of greenhouse gas emissions expected to be associated with the project, Mr Madden said he was satisfied that any such emissions would be readily assessed once the proposed plant design is finalised.

Mr Madden noted that the EPA Work Approval process would also provide a satisfactory means of assessing suitable means to reduce these emissions.

“In the longer-term there may be an opportunity to implement technologies to capture and store carbon dioxide emissions from facilities such as the proposed Esso plant,” added Mr Madden.

In the absence of an EES, the proposed plant is likely to be subject to both a future obligation to monitor and report greenhouse gas emissions and incentives to abate these emissions within a legislated framework for emissions trading.

Esso spokesperson Rob Young told Gas Today that the company welcomed the Minister’s decision.

“It allows the joint venture parties in the Kipper project greater certainty as we head towards a final investment decision later in the year,” Mr Young said.