Woodside’s North West Shelf Gas Project Granted Life Extension to 2070
In a major move set to shape Australia’s energy and environmental future, the federal government has granted environmental approval for the North West Shelf gas project to continue operations until 2070. This decision marks a turning point in Australia’s approach to fossil fuel infrastructure, sparking fierce debate across political, environmental, and industry circles.
Woodside’s North West Shelf Gas Project [Image: Woodside]
A Long-Awaited Decision
After six years of environmental assessment, Environment Minister Murray Watt announced the decision to approve the extension of the North West Shelf gas project—Australia’s largest and oldest gas venture located in northern Western Australia. Woodside, the operator of the project, first lodged the proposal to extend the life of its Karratha Gas Plant beyond 2030 back in 2019.
“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,” Senator Watt said.
The Woodside-operated Karratha gas plant located on the Burrup Peninsula. Photo: Krystle Wright/The Guardian
While this approval allows Woodside to operate the plant until 2070, it does not guarantee that the plant will remain active until that year. Notably, the extension does not permit the opening of new gas fields, but it significantly lengthens the timeframe in which existing infrastructure can be utilised.
Environmental and Political Fallout
The announcement has drawn mixed responses. The Coalition welcomed the decision as a win for energy security and economic stability, while the Greens and climate advocates condemned it as a backwards step in Australia’s climate commitments.
Greenpeace Australia Pacific CEO David Ritter described the decision as “terrible,” citing the facility’s significant greenhouse gas output. “The North West Shelf facility is one of the dirtiest and most polluting fossil fuel projects … despite what the gas lobby says, the reality is we don’t need more polluting gas,” he said.
The approval process has also highlighted legal limitations in Australia’s environmental legislation. Under the current Environmental Protection and Biodiversity Conservation Act, climate change impacts are not considered a valid basis for project rejection, limiting the minister’s ability to assess broader environmental consequences.
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Economic and Heritage Considerations
Senator Watt clarified that his decision factored in the project’s impacts on nearby heritage sites, including national heritage-listed rock art. Concerns about potential damage were dismissed due to the absence of a physical footprint expansion.
Additionally, the economic importance of the North West Shelf gas project was a major consideration. Currently, the project supports a significant portion of Western Australia’s domestic power supply and underpins a large share of the state’s LNG exports.
Despite these benefits, the project faces ongoing scrutiny over the economics of gas supply. With existing royalty-paying gas fields declining, there are fears that Woodside will increasingly rely on royalty-free sources such as the Browse Basin, effectively reducing returns to the public.
Billions in Royalty-Free Gas
A recent report by independent analysts estimates that over the 46-year extension, up to $215 billion worth of gas could be supplied royalty-free to the North West Shelf gas project. At a conservative price of $8 per gigajoule, and assuming that 70% of the plant’s feedstock will come from non-royalty-paying sources by the mid-2030s, this equates to $14 million a day in public revenue potentially foregone.
This revelation has intensified calls for royalty reform and greater transparency in gas contracts. Critics argue that continuing to give away public resources undermines both economic fairness and Australia’s global environmental leadership.
International Repercussions
The decision also risks undermining Australia’s standing on the international stage, particularly in the Pacific region. Tuvalu’s Climate Minister Maina Talia warned that locking in emissions until 2070 jeopardises the survival of low-lying Pacific nations and could hinder Australia’s bid to co-host the 2026 global climate summit.
Domestically, the move has put pressure on the Albanese government’s climate credibility. Although the government had intended to overhaul environmental laws to include climate considerations, a planned reform bill was shelved after resistance from Western Australian Premier Roger Cook. Senator Watt has since confirmed that a revised version of the bill will be introduced to Parliament as a priority.
Industry’s Frustration and Relief
The drawn-out assessment process frustrated industry stakeholders, particularly after the project had already secured state-level environmental approvals. The former environment minister Tanya Plibersek delayed a decision twice, prompting the Coalition to vow a swift approval if returned to government.
Senator Watt, acknowledging the long wait, described his decision as necessary to provide certainty to the energy sector and to reinforce Australia’s position as a reliable energy exporter.
What’s Next?
Although the minister has made a proposed approval, Woodside still has ten business days to respond before a final decision is issued. Given the scale and impact of the North West Shelf gas project, further legal challenges and political manoeuvring are expected in the coming months.
As Australia navigates the complex intersection of energy needs, economic opportunity, and environmental responsibility, the future of the North West Shelf gas project will remain a lightning rod for broader debates about the country’s climate and resource policies.
