Australia Greenlights North West Shelf LNG Extension to 2070

Australia has officially approved the extension of the North West Shelf Project, allowing the country’s oldest and largest liquefied natural gas (LNG) facility to operate until 2070. This decision was finalized by the federal Environment Minister, Murray Watt, on Friday, who imposed 48 stringent conditions aimed at minimizing significant impacts on the Murujuga rock art, a site of cultural importance.

Located in Karratha, Western Australia, the North West Shelf gas processing plant has been central to the country’s energy landscape since it began operations in 1984. The extension was originally proposed by Woodside Energy, Australia’s leading gas producer, in 2018. The approval process involved extensive reviews by both state and federal governments, responding to numerous appeals from environmental activists concerned about the potential effects on local ecosystems and heritage sites.

The renewed environmental consent allows Woodside and its partners to continue gas production using existing infrastructure, which is crucial for meeting domestic energy demands. Key to the approval is a commitment that the project will reduce its emissions annually and achieve net zero greenhouse gas emissions by 2050, in line with the strengthened Safeguard Mechanism established by the Albanese Government.

In a statement following the announcement, Liz Westcott, Woodside’s Executive Vice President and Chief Operating Officer for Australia, expressed satisfaction with the decision. “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,” she noted.

The decision comes at a time when energy companies across Australia are striving to increase domestic gas output. This need is driven by challenges in meeting peak demand periods in major consumption areas, which often strain current supply capabilities. The North West Shelf Project plays a vital role in addressing these challenges while navigating the complexities of environmental sustainability and cultural preservation.

As the project prepares for this extended operational phase, stakeholders will be closely monitoring compliance with the environmental conditions set forth, ensuring that both energy demands and ecological responsibilities are balanced effectively.