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

Australian energy giant Woodside Energy has welcomed the federal government’s proposed decision to grant environmental approval for the extension of its mega gas project off the coast of Australia. This prolongs the project’s lifetime from 2030 to 2070.

Several months after the Western Australian government decided to grant environmental approval for the North West Shelf (NWS) project extension after six years of assessment and appeals, Woodside and the North West Shelf joint venture confirmed the federal government’s proposed decision to grant environmental approval for the NWS project extension, which is expected to provide certainty for the ongoing operation of the project.

Liz Westcott, Woodside’s Executive Vice President and Chief Operating Officer, highlighted: “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.”

Over A$40 billion (more than $25.79 billion) in royalties and excise has been paid during four decades, providing employment and contracting opportunities to the Pilbara and broader Western Australian community, while well over A$300 million (nearly $193.42 million) was invested in social and community infrastructure within the city of Karratha. The approval of the extension is key to advancing Woodside’s $30 billion Browse gas project.

The North West Shelf project has supplied more than 6,000 petajoules of domestic gas, which, if used for just household electricity, is enough to power homes in a city the size of Perth for approximately 175 years. The Australian giant has received the proposed federal conditions related to matters such as cultural heritage management and air quality.

Woodside emphasized: “We recognise the significance of these matters and are reviewing the proposed conditions to understand their application. We remain committed to protecting the Murujuga Cultural Landscape and support its World Heritage nomination. We believe long-term co-existence between cultural heritage and industry is possible when guided by credible science, Traditional Custodian leadership, and genuine collaboration.

“As part of the State Government approval in December 2024, the North West Shelf committed to a range of environmental management measures, including a significant reduction in air emissions and measures to manage greenhouse gas emissions and to reduce them over time. In addition, meaningful consultation with Traditional Owners is occurring as part of these conditions, including complying with all air quality objectives and standards arising from the Murujuga Rock Art Monitoring Program.”

The North West Shelf project extension is seen as important to enable the long-term processing of the NWS joint venture (JV) field resources and third-party gas resources through the Karratha gas plant (KGP), located 1,260 kilometers north of Perth in Western Australia. Woodside took a final investment decision (FID) on the low-pressure operation project at Goodwyn Alpha, aimed at increasing NWS production from the Goodwyn area reservoirs.

Those opposed to the 40-year extension, such as the Australia Institute, see the decision made by Murray Watt, Environment Minister, and the Albanese government to back the extension of Woodside’s North West Shelf gas project in Western Australia as a move that will green-lit emissions equivalent to 12 new coal-fired power stations for 46 years.

While expressing its disappointment that the government has approved what it describes as a “climate wrecking” gas project, the Australia Institute pointed out: “This huge export terminal will require feed-in gas projects, and by stopping them we can reduce the harmful impact of this project on our climate. Today’s news is cold-hard proof that stopping individual gas projects will never be enough – we need to shift the politics for good.”