Woodside Energy North West Shelf extension wins final approval from federal government

The federal government has announced its final approval for the controversial North West Shelf gas extension project in Western Australia.

The approval means the mammoth Woodside Energy facility in the Pilbara will run until 2070.

Environment Minister Murray Watt said he had attached an additional 48 conditions to the extension, including provisions to protect nearby Indigenous rock art.

“In making this decision, I have imposed 48 strict conditions that will avoid and mitigate significant impacts to the Murujuga rock art,” he said on Friday afternoon.

“The additional conditions I have imposed add to those already set by the Western Australian government.

“This will ensure that this project will be operated in a way that does not cause unacceptable impacts to the Murujuga rock art, in compliance with federal environmental law, including restricting air emissions which otherwise could have accelerated damage.”

The conditions force Woodside to reduce the facility’s nitrogen oxide emissions by 60 per cent by 2030 and 90 per cent by 2061.

Further, it must reduce its emissions each year and reach net zero greenhouse gas emissions by 2050 under the pre-existing Safeguard Mechanism policy.

The oil and gas producer must also put in place a continuous emissions monitoring system to show compliance with the government’s proposed limits on emissions levels.

Friday’s sign-off marks the end of a years-long approvals process, with Indigenous and environmental groups staunchly opposed to the extension.

The Australian Conservation Foundation said the government had chosen to “detonate a carbon bomb”.

“The conditions can’t alter the fact the Albanese government is responsible for granting one of the world’s largest gas approvals while the planet is engulfed in a climate crisis,” ACF climate program manager Gavan McFadzean said.

“The Albanese government’s progress on renewables at home is wiped out by its continued support to expand Australia’s gas exports.

“No matter where Australian gas is burned, it puts people and nature in harm’s way by fuelling more extreme weather.”

The project does not involve building new gas plants but rather extending the operations of the existing Karratha gas facility on the Burrup peninsula, about 1500km north of Perth.

The extension has already secured approval from the WA government.

Mr Watt’s final nod solidifies Woodside’s position as a major gas exporter into international and domestic energy markets.

It secures thousands of high-paying jobs and lucrative revenue streams for state and federal coffers.

The company says North West Shelf has paid out more than $40bn in federal tax and royalties over its more than 40-year history and has supplied more than 6000 petajoules of domestic gas to WA.

The extension could also support the development of new gas fields.

Mr Watt, speaking to reporters after the announcement, defended the government record on climate change, stating it was on track to meet its 43 per cent emissions reduction target by 2030.

Woodside is an ASX-listed company with a market capitalisation of some $46bn and sprawling operations and projects spread across Australia, the US, Senegal and Mexico.