The minister endorsed an Environmental Protection Authority recommendation that the company puts forward a comprehensive set of environmental measures to offset the potential impact that dredging could have on coral.

Templeman said negotiations with Woodside were underway and he expected a superior offset package would be reflected in the stringent environmental conditions that would be applied to the project before it was given final approval.

“The Dampier Archipelago has significant environmental values and the tough environmental conditions for this project will require that it has no impact within the proposed Dampier Archipelago Marine Park,” he said.

“The conditions will require that dredging for the project must cease if certain criteria are exceeded.

“In line with State Government policy, the conditions will require Woodside to offset the reservoir carbon dioxide released to the atmosphere for the life of the project.

“With a better offset package and a stringent set of conditions, any risks to the marine environment and the Burrup Peninsula can be properly and strictly managed and this important project could proceed without harming the environment.”

Templeman said the Carpenter Government was committed to a co-operative approach with the Commonwealth, the Aboriginal community and industry to ensure that heritage, environment and sustainable industry could co-exist in the Dampier Archipelago.

The minister also determined nine appeals against the Environmental Protection Authority’s advice on the Pluto project in July.

Most of the appeals raised concerns about Pluto’s impact on the area’s Aboriginal rock art.

“The Aboriginal rock art on the Burrup Peninsula and Dampier Archipelago is immensely valuable in cultural and heritage terms, and the Carpenter Government supports a range of measures to protect it, including listing of the area on the National Heritage Register,” Templeman said.

“I am satisfied that the protection and conservation of rock art will not be compromised by this project. Where there is any unavoidable impact on rock art, it will be managed in consultation with the traditional custodians of the land.”

He also concluded that there was no evidence to suggest any emissions from the project would have any adverse effect on the rock art, but said monitoring of this issue would continue to be undertaken by the Burrup Rock Art Management Committee.

Meanwhile, Woodside has announced the formal signing in Sydney of a Pluto LNG export deal with representatives of Tokyo Gas and Kansai Electric of Japan.

The agreement provides for the supply of up to 3.75 million tonnes per annum of LNG to Tokyo Gas and Kansai Electric for 15 years, beginning late 2010.

The parties also signed agreements to formalise Tokyo Gas and Kansai Electric taking equity in the Pluto project. Tokyo Gas and Kansai Electric will each take 5% equity in the Pluto permit (WA-350-P) and the Pluto Train 1 infrastructure, reducing Woodside’s interest to 90%.