WA Grants Environmental Approval for North West Shelf

WA Grants Environmental Approval for North West Shelf

The Western Australian government has granted environmental approval to Woodside Energy’s North West Shelf Project Extension, clearing a critical hurdle for the Karratha Gas Plant to continue operations through at least 2025. This decision follows a rigorous six-year regulatory review and ensures Australia’s largest LNG project remains operational amid growing global energy demands.

Key Details of the Approval

Announced in December 2024, the approval allows the Karratha Gas Plant to process gas from the North West Shelf Joint Venture fields and third-party reservoirs. Notable aspects include:

• Continuation of gas exports contributing 10% of global LNG supply
• Ongoing domestic gas production equivalent to powering 30 million WA homes annually
• Legally binding commitments to reduce nitrogen oxides (NOx) and volatile organic compounds (VOCs)

Why This Decision Matters for Energy Markets

With 35 years of LNG exports and 40 years of domestic gas production, the project has:

• Supplied over 6,000 petajoules of gas – enough to power Perth for 175 years
• Generated $40 billion+ in royalties and excise payments
• Maintained Australia’s position as a top LNG exporter to Asia

Environmental Safeguards and Traditional Engagement

Under the approval terms, Woodside must:

• Implement annual greenhouse gas reduction plans starting 2025
• Conduct quarterly air quality monitoring around the Burrup Peninsula
• Consult with Traditional Owners through structured cultural heritage programs

Executive VP Liz Westcott confirmed: “We’re upgrading turbine technologies to cut emissions by 12% before 2030, while maintaining WA’s stringent environmental compliance.”

Economic Impact on Northern WA

The approval safeguards:

• 3,200 direct jobs in the Pilbara region
• Ongoing $18 million/year investments in local communities
• Future expansion potential for third-party gas processors

Since 1984, the project has funded:

• $300 million+ in regional infrastructure (ports, schools, hospitals)
• Training programs for Indigenous businesses in the Murujuga area

Next Steps: Federal Approval Process

With state approvals secured, focus shifts to:

• Federal environmental assessments expected by Q2 2025
• Final investment decisions on Browse Basin gas fields
• Negotiations with Japanese/Korean LNG buyers for contract renewals

A 40-Year Legacy Fueling Australia’s Future

As the NWS Project marks four decades of operation, analysts note:

• Capacity to supply 5% of Asia-Pacific LNG through 2040
• Potential integration with WA’s emerging hydrogen economy
• Ongoing role balancing energy security and climate targets