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The federal government is considering enforcement action against oil and gas company Inpex after it admitted serious reporting errors that significantly underestimated hazardous emissions released from its liquefied natural gas (LNG) plant on Darwin Harbour over many years.

The LNG plant is 3 kilometres from residential suburbs and 10km from Darwin city. It is required to report emissions to the National Pollutant Inventory.

Inpex has now released corrections for 2023–24 that more than double the previous estimates of emissions of volatile organic compounds (VOCs) released into the air in Darwin, from 1,619 to 3,562 tonnes. The reason for the errors has not been disclosed.

The originally reported levels of very toxic compounds benzene and toluene were just 4–5 tonnes in 2023–24. However, corrected estimates were 136 and 112 times higher, respectively, with emissions exceeding 500 tonnes of both chemicals.

Currently there is no legal limit on the amount of VOCs that Inpex is allowed to emit. These new figures raise questions about the potential harms, given serious toxicity of benzene and toluene, the large amounts released into the atmosphere over several years, the closeness to population centres and the lack of detail in current sampling. As a cancer-causing chemical, there is no known safe threshold for benzene exposures.

When the news broke, NT Chief Minister Lia Finocchiaro responded with public statements of faith in Inpex and the NT Environment Protection Authority. She said the incident illustrated the reliability of industry self-reporting. Inpex said the revised levels raised no health concerns for Darwin.

As a group of leading scientists aware of the complexities involved in measuring these chemicals and their health impacts, we strongly disagree. We view the potential health implications to be significant – they require an urgent, comprehensive and independent investigation.

Given the size of this correction, it’s imperative that corrections across all years are made public immediately. Corrected levels of benzene and toluene for 2021–22 could be particularly high, as Inpex has already reported emitting 11,000 tonnes of volatile organic compounds to the National Pollutant Inventory. That is nearly seven times more than the amount now reported for 2023-24.

Higher volatile organic compound emissions in 2024/25

In the wake of this scrutiny, Inpex has also released corrected data for 2024–25. Compared with 2023–24, Inpex further increased its emissions of total volatile organic compounds by 21%, with a 31-fold increase in xylene emissions and continuing high emissions of benzene and toluene.

This is despite revelations in 2024 that Inpex had emitted many times more volatile organic compounds than the 500 tonnes predicted in their draft Environmental Impact Statement to the NT government in 2008.

This led to detailed questioning of the chairs of Inpex and the NT Environment Protection Authority by senators David Pocock and Sarah Hanson-Young at the Senate Inquiry into federal support to the Middle Arm Industrial Precinct in Darwin in 2024.

In addition, documents provided by Inpex to the inquiry also revealed the facility’s two anti-pollution devices had been out of operation for extended periods of time since 2019. These devices, called acid-gas incinerators, destroy volatile chemicals such as benzene, toluene and hazardous sulphur-containing compounds before they are released. There were no legal consequences for these breakdowns and resulting elevated VOC emissions.

Alarmingly, the Middle Arm Inquiry Report ignored these discussions. Labor and Liberal senators gave full support for a third LNG facility to be built in Darwin with little mention of the extensive health concerns raised in submissions and additional papers.

Why are these emissions so concerning?

Many studies have linked exposure to the toxic family of chemicals known as BTEX (benzene, toluene, ethylbenzene and xylenes) to multiple health issues. Short exposures can cause symptoms such as headaches, respiratory symptoms and asthma attacks. Longer exposures can cause neurological damage, pre-term births and impaired liver, kidney, lung, reproductive and immune function.

The World Health Organization classifies benzene as a carcinogen, most strongly associated with leukaemia and other blood cancers.

While most research to date has examined risks associated with BTEX chemicals in workplaces and indoor settings, many recent studies have demonstrated that at least some of these risks extend to outdoor exposures.

Last month, an extensive multi-country study demonstrated a consistent link between benzene, toluene and xylene levels in outdoor air and the risk of death.

Besides these direct risks, BTEX chemicals react readily once in the atmosphere to form ground-level ozone, especially in warm, tropical environments such as Darwin.

We need clean air

Darwin residents are understandably concerned about the levels of highly toxic chemicals emitted by Inpex LNG so close to homes and urban areas of Darwin.

Days before these revelations, the NT EPA reported one of Inpex’s two LNG processing units had released 36,000 litres of hot oil across the plant and into stormwater drains.

These pollution issues follow the ABC investigation of a significant gas leak at the nearby Santos LNG facility, which had not been made public for nearly 20 years.

The federal Department of Climate Change, Energy and the Environment is now reviewing these incidents and considering enforcement action.

Inpex senior vice president Bill Townsend told the ABC workers had been told there was “no cause for health concern”, citing air quality monitoring – both on-site and in the Darwin region – which he said had “consistently” shown emissions were within government limits.

This week, hotly debated new national environment protection laws are expected to enter Parliament. Strong environmental laws aren’t just for wildlife – they are vital in protecting human health too. Improved evidence-based federal laws such as a Clean Air Act would go a long way to protecting Australia’s health and wellbeing.

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^{This announcement is not an offer of securities for sale in any jurisdiction, including the United States, Canada, Australia or Japan. Neither this announcement nor anything contained herein shall form the basis of, or be relied upon in connection with, any offer or commitment whatsoever in any jurisdiction.}

 

Following what was previously announced yesterday, Leonardo S.p.A. (“Leonardo”) has successfully completed the sale of approximately c. 2.6 million shares in Avio S.p.A. (“Avio”) equivalent to c. 9.4% of its share capital (the “Placement” or the “Transaction”). 

Following the Placement, Leonardo holds approximately 19.0% of the share capital of Avio. 

The Placement, carried out through an accelerated bookbuilding procedure, was priced at Euro 37.50 per share and will be settled by delivery of shares and payment of the consideration on 31st October 2025. 

In the context of the Transaction, Leonardo has agreed to a 90-day lock-up period on its remaining shares in Avio, in line with market practice. 

In connection with the Transaction, Intesa Sanpaolo, Jefferies and Morgan Stanley acted as Joint Global Coordinators and Joint Bookrunners.

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IMPORTANT INFORMATION
The distribution of this announcement and the offer and sale of the Placing Shares in certain jurisdictions may be restricted by law. The Placing Shares may not be offered to the public in any jurisdiction in circumstances which would require the preparation or registration of any prospectus or offering document relating to the Placing Shares in such jurisdiction. No action has been taken by Leonardo, the Joint Global Coordinators  and Joint Bookrunners or any of their respective affiliates that would permit an offering of the Placing Shares or possession or distribution of this announcement or any other offering or publicity material relating to such securities in any jurisdiction where action for that purpose is required.

This announcement is not for publication, distribution or release, directly or indirectly, in or into the United States of America (including its territories and dependencies, any State of the United States and the District of Columbia), Australia, Canada or Japan or any other jurisdiction where such an announcement would be unlawful. The distribution of this announcement may be restricted by law in certain jurisdictions and persons into whose possession this document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

No prospectus or offering document has been or will be prepared in connection with the Placing. Any investment decision to buy securities in the Placing must be made solely on the basis of publicly available information. Such information is not the responsibility of and has not been independently verified by Leonardo, the Joint Global Coordinators and Joint Bookrunners or any of their respective affiliates.

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In the EEA member states (each such EEA member state a “Relevant State”), this press release and the information contained herein is intended only for and directed only to “qualified investors” as defined in Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market, and repealing Directive 2003/71/EC (together with any related implementing and delegated regulations, the “Prospectus Regulation”). The securities mentioned in this press release are not intended to be offered to the public in any Relevant State and are only available to qualified investors. Persons in any Relevant State who are not qualified investors should not take any actions based on this press release, nor rely on it. 

In the United Kingdom, this announcement and any other materials in relation to the securities described herein are only being distributed to, and are only directed at, and any investment or investment activity to which this document relates is available only to, and will be engaged in only with, “qualified investors” (within the meaning of assimilated Regulation (EU) 2017/1129 as it forms part of the law of the United Kingdom by virtue of the EU (Withdrawal) Act 2018) who (i) have professional experience in matters relating to investments which fall within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the “Order”), (ii) are persons falling within Article 49(2)(a) to (d) of the Order, (iii) are outside the United Kingdom, or (iv) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as “relevant persons”). This announcement is directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this announcement relates is available only to relevant persons and will be engaged in only with relevant persons.

Intesa Sanpaolo S.p.A., Jefferies GmbH and Morgan Stanley & Co. International plc are acting for Leonardo only in connection with the Placing and will not be responsible to anyone other than Leonardo for providing the protections offered to the respective clients of the Joint Global Coordinators and Joint Bookrunners, nor for providing advice in relation to the Placing or any matters referred to in this announcement.