Green light for North West Shelf gas extension likely despite environmental pushback

Approval of the controversial North West Shelf (NWS) extension seems more likely now than ever, with various sides of government highlighting their support for the multi-billion-dollar Western Australian development.

New federal environment minister Murray Watt – who has reportedly indicated that he is in favour of the major export earner – should announce a decision on the extension before the end of this month.

Recently re-elected Prime Minister Anthony Albanese has also reportedly suggested to WA government officials that he has no objections to the extension going ahead.

Environmental concerns

Mr Watt’s decision on the massive development comes as claims are being raised that local industry is having an impact on ancient rock carvings in the area.

However, there has been no clarification on whether it is the nearby LNG, iron ore, salt, other downstream processing projects or related support industries that are affecting the tribal artefacts.

Environmentalists have also lobbied hard against the extension, claiming it could result in more than 4 billion tonnes of carbon emissions over its additional 50 years of operations.

WA approval received

The North West Shelf Project Extension relates to environmental approval for ongoing operations at the Karratha gas plant beyond 2030.

The WA state government handed down its approval for the extension December 2024, after six years of assessment and appeals.

As operator for the North West Shelf Venture, Woodside Energy (ASX: WDS) is now awaiting finalisation of the federal approval process, which it says will provide certainty around an ongoing operation that intends to utilise existing infrastructure to significantly reduce its impact on the local environment.

World-class LNG project

One of the largest LNG projects in the world, the NWS project has supplied energy to Australian and international customers since the 1980s, investing hundreds of millions of dollars into the local economy and community.

It also pioneered the LNG industry in Australia, bringing in millions in export earnings every year.

The project is the largest resource development in Australian history, producing huge hydrocarbon reserves within the Carnarvon Basin.

Financial cornerstone

The NWS is a major employer in and around the Pilbara region, with investments of more than $25 billion since the early 1980s supporting the development of a local workforce and contracting opportunities throughout WA.

The Karratha gas plant, which after decades of processing only NWS resources is now tolling gas for other resource owners as well, is the main component of the project.

Analysts expect that a positive decision for the extension would also support development of Woodside’s giant offshore Browse gas field 900 kilometres north of the NWS, which the company plans to link to it via pipeline.