Woodside Energy Group Ltd (ASX:WDS, LSE:WDS, OTC:WOPEF)'s North West Shelf gas project yesterday received federal approval to continue operating until 2070 – a significant, but controversial development for Australia’s energy sector.
Federal Environment Minister Murray Watt announced the decision on Wednesday, confirming the extension was granted with stringent environmental conditions attached.
“Following the consideration of rigorous scientific and other advice including submissions from a wide cross-section of the community, I have today made a proposed decision to approve this development, subject to strict conditions, particularly relating to the impact of air emissions levels from the operation of an expanded on-shore Karratha gas plant,” Watt said in a statement.
Woodside executive vice president and COO Australia Liz Westcott said the proposed Federal Government approval will provide certainty for the ongoing operation of the North West Shelf Project following rigorous assessments and appeals.
“This proposed approval will secure the ongoing operation of the North West Shelf and the thousands of direct and indirect jobs that it supports.
“This nationally significant infrastructure has supplied reliable and affordable energy to Western Australia for 40 years and international customers for 35 years and will be able to continue its contribution to energy security.
“Since starting operations in 1984, the North West Shelf Project has paid over A$40 billion in royalties and taxes, and supported regional development opportunities in the Pilbara.”
The company says the North West Shelf Project has delivered over 6,000 petajoules of domestic gas to Western Australia, fuelling both households and industry. This volume of energy, if used solely for household electricity, could power a city the size of Perth for around 175 years.
Over its four-decade lifespan, the project has contributed more than A$40 billion in royalties and excise payments. It has supported employment and contracting opportunities across the Pilbara and wider Western Australian region, while also investing more than A$300 million in social and community infrastructure in Karratha.
Seven years later…
The approval concludes a lengthy seven-year assessment process and comes amid efforts to nominate nearby Indigenous rock art for World Heritage listing.
The decision has drawn strong reactions.
Industry figures, such as Chamber of Minerals and Energy of Western Australia chief executive Rebecca Tomkinson, welcomed the move as “a really important step in ensuring the ongoing energy security”, environmental and Indigenous groups condemned it.
Conversely, Piper Rollins from the Australian Conservation Foundation said, “This flies in the face of all of the scientific evidence on climate change.” The Australian Marine Conservation Society also raised concerns, with chief executive Paul Gamblin warning the decision “puts Scott Reef directly in the firing line”.
Traditional Owners have indicated they are preparing a legal challenge.
Meanwhile, Woodside has ten days to review and respond to the conditions imposed. The company has indicated it is currently assessing the full implications.
Should the project proceed as planned, it would clear a path for development of the Browse Basin, Australia’s largest undeveloped offshore gas field.