Looking to buy Woodside shares? Here’s why the energy giant faces a fresh legal battle from climate activists

People protesting to act on climate change.People protesting to act on climate change.

The Woodside Energy Group Ltd (ASX: WDS) share price is in the red on Tuesday. Its slump comes amid news climate activists are challenging the company’s $17 billion Scarborough Project in the Supreme Court.

The Conservation Council of WA (CCWA) is challenging approvals for Pluto Train 2, saying pollution and environmental harm from resulting emissions wasn’t properly considered. Pluto Train 2 is a critical component of the project.

Woodside shares are trading at $32.39 at the time of writing, 1.37% lower than their previous close. For context, the S&P/ASX 200 Index (ASX: XJO) is down 0.46% right now.

Let’s take a closer look at the latest legal battle over the ASX 200 energy giant’s major project.

Woodside’s Scarborough Project back in court

Looking to snap up Woodside shares? The company’s hitting headlines today after CCWA announced it’s challenging the WA Department of Water and Environmental Regulation’s approval of Pluto Train 2’s construction, handed down in May 2021.

Pluto Train 2 is a proposed expansion of Woodside’s Pluto LNG gas facility’s processing capacity.

CCWA claims the regulator failed to consider the expansion will nearly double the facility’s emissions.

To save duplicating findings, an increase in emissions was instead considered by WA’s Environmental Protection Agency.

CCWA executive director Maggie Wood said governments and their departments have “a legal and moral duty” to protect Australia’s climate. Wood continued:

To avoid irreversible damage to our climate and protect the people of WA from the horrific effects of more droughts, floods, and bushfires it is vital that the long-lasting impacts of fossil fuel proposals are taken seriously and given the most stringent and careful regulatory assessment before decisions are made.

The Scarborough project still has several regulatory hurdles to clear.

It’s also the subject of a separate legal challenge brought by the Australian Conservation Foundation.

Woodside share price snapshot

Today’s slip hasn’t been enough to dint the Woodside share price’s longer-term gains.

The stock has lifted 48% since the start of 2022. It’s also 46% higher than it was this time last year.

The post Looking to buy Woodside shares? Here’s why the energy giant faces a fresh legal battle from climate activists appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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