Inquiry hears pipelines pose environmental risk

Appearing before the Legislative Council Environment and Planning Committee’s inquiry into decommissioning oil and gas infrastructure, Fern Cadman, Fossil Fuel Industry Campaigner at the Wilderness Society warned that Gippsland’s offshore region has around 800 kilometres of subsea pipelines. 
 
‘Even if buried, eventually they will degrade, and all that is going to end up in the environment,’ she told the Committee.

Stan Woodhouse from environmental organisation Friends of the Earth told the hearing that some contaminants can bioaccumulate and move through the food chain.  
 
‘If we leave it on the seabed, it will end up on our dinner plates,’ he said.  
 
The Committee is investigating the scale and legal ownership structure of the infrastructure, including offshore wells, pipelines, high-pressure transmission and low-pressure distribution systems, and relevant projects in Commonwealth waters. 

The environmental groups advocated for removing the pipelines before they have a chance to corrode. 
 
‘Industry says it’s too hard to remove them, but engineers say almost anything can be done, you just have to be prepared to pay for it and use the right tools,’ Ms Cadman said.

“ ‘If we leave it on the seabed, it will end up on our dinner plates.' ”

Stan Woodhouse, Friends of the Earth

Instead Victoria should treat the pipelines and other infrastructure as a potential resource and an opportunity to boost domestic steel recycling and cut emissions. 
 
Jerusha Beresford, Sustainability Adviser at the Australian Steel Institute (ASI), urged the Committee to recognise the value of infrastructure such as oil platforms that have reached the end of their life.  
  
‘We are strongly recommending that the scrap steel recovered from the decommissioning of the Bass Strait oil and gas infrastructure is recognised as a valuable national resource and prioritised for local recycling into domestic steel manufacturing and not exported,’ Mr Beresford told the Committee.   
  
According to ASI, the first tranche of decommissioning will yield 60,000 tonnes of high-grade steel from 12 retired platforms, with significantly more expected over the next decade.   
  
‘Demand for steel for renewable infrastructure alone is forecasted to be about 400,000 tonnes per year through to 2030… retaining scrap locally is essential to meet that demand,’ he said.  
  
The benefits extend beyond supply security. Using scrap steel in manufacturing dramatically reduces carbon intensity compared to primary production and can support Australia’s transition to low-emission steelmaking. Mr Beresford told the hearing that both electric arc furnaces and blast furnaces rely heavily on scrap, with the former using up to 90 per cent recycled content.  
  
Economic modelling also points to strong local gains. ASI cited analysis showing that every 10,000 tonnes of scrap steel that’s processed domestically creates 37 jobs and $4.8 million in value-add, compared to just $1.3 million if exported.  
  
‘Scrap use lowers the carbon intensity of steelmaking by reducing reliance on primary resources like iron and coal… It is crucial in meeting Australia’s capability to manufacture low-emission steel products,’ he said.   
 
However, he warned that without regulatory intervention, contractors may opt to export scrap for short-term financial gain.   
  
‘Unfortunately, the past has showed that sometimes scrap is exported because it is perceived to be an easier way to get rid of the waste and the contractor gets paid for it,’ he explained.  
  
With Australia’s steel industry employing 100,000 people and generating $30 billion annually, Mr Beresford said the decommissioning pipeline represented a ‘once-in-a-generation' chance to strengthen domestic manufacturing, create jobs, and advance the circular economy.  

Go to the Committee’s website for the transcripts of hearings and the full terms of reference.  
  
The Committee will report to the Parliament by June 2026.