Woodside’s Australian gas project gets green light for 40 more years of operation

September 12, 2025, by Dragana Nikše

The Australian Government has approved the continuation of the operation of a gas project situated on Australia’s northwest coast, operated by the country’s energy giant, Woodside Energy.

Karratha gas plant; Courtesy of Woodside

The final decision for the North West Shelf (NWS) project extension – relating to the approval for the Karratha Gas Plant to continue operating beyond 2030 – was communicated in a statement by Murray Watt, Australia’s Minister for the Environment and Water. The approval is effective until December 31, 2070.

Located in north-western Australia, the NWS is described by Woodside as a nationally significant asset. The project includes a network of offshore oil and gas infrastructure and an onshore processing facility in Karratha.

The project started exporting liquefied natural gas (LNG) to international customers in 1989. Since then, more than 6,000 LNG cargoes have been delivered overseas.

Woodside is the project’s operator and 33.33% interest holder, with BP Developments Australia, Chevron Australia, Japan Australia LNG (MIMI), and Shell Australia as partners, each holding a 16.67% interest.

The approval is the last procedural step in what Watt says was a lengthy process, which started several years ago. It represents the formalization of an earlier announcement of a proposed approval.

Go-ahead for life extension of Woodside’s huge offshore gas project to 2070

Authorities & Government

Since the project affects the World Heritage-listed Murujuga rock art, which forms part of Western Australia’s Dampier Archipelago, Watt imposed 48 strict conditions on top of those previously introduced by the Australian Government.

Notably, this includes slashing certain gas emissions below their current levels, in some cases by 60% by 2030. Additionally, the project will be required to reduce its emissions every year and reach net-zero greenhouse gas emissions by 2050.

Woodside and the North West Shelf Joint Venture welcomed the decision, with the Australian giant noting that it remains committed to protecting the Murujuga Cultural Landscape.

“This final approval provides certainty for the ongoing operation of the North West Shelf Project, so it can continue to provide reliable energy supplies as it has for more than 40 years,” said Liz Westcott, Woodside’s Executive Vice President and Chief Operating Officer Australia.

“Over this time, the North West Shelf Project has paid more than A$40 billion in royalties and excise, supported thousands of Australian jobs and contributed well over A$300 million to communities in the Pilbara through social investment initiatives and infrastructure support

The extension is also key to advancing Woodside’s $30 billion Browse gas project. As part of the Browse to NWS project development, Woodside aims to transport gas from Browse via an approximately 900 km pipeline to the existing NWS project infrastructure. The plan also includes two floating production storage and offloading (FPSO) units.