News: WDS UPDATE 1-Woodside gets Scarborough project approval after green group dismisses challenge

(Updates with further details and background)

Aug 19 (Reuters) -

Woodside's (WDS) $12.5 billion Scarborough gas project in Western Australia has all primary environmental approvals in place, the firm said on Monday, after a green group agreed to dismiss its challenge in a federal court.

The Australian Conservation Foundation had in June, 2022 asked the Federal Court to stop Woodside working on the Scarborough gas project until an assessment is made about its potential impact on the Great Barrier Reef.

The energy giant on Monday said the parties had agreed to seek order from the Federal Court to dismiss the proceedings against Woodside.

The Australian Conservation Foundation (ACF) had earlier argued that the Scarborough project should be evaluated under that law because it will have a significant impact on the Great Barrier Reef, as the exported gas burned in other countries will worsen global warming.

The ACF did not immediately respond to a Reuters request for comment.

"The Scarborough reservoir contains less than 0.1% carbon dioxide and combined with processing design efficiencies will be one of the lowest carbon intensity sources of LNG delivered into north Asian markets," Woodside CEO Meg O’Neill said on Monday.

Woodside's flagship project is set to produce as much as 8 million tons a year of the fuel and has recently been a target for climate activists amid the world's shift to cleaner forms of energy.