The final environmental approval of the North West Shelf Project extension will help to keep Australian industry competitive by securing more affordable and reliable energy for households and businesses.
Woodside has operated the project over the past 40 years, which is located off Western Australia’s north coast. The project has been tied up in the approvals process for more than six years but cleared its final regulatory hurdle today which includes strict conditions around air emissions.
CCIWA’s Chief Economist, Aaron Morey, said the project’s approval highlights how vital gas is to our economy.
“Without a secure supply of gas, our industries wouldn’t just slow down – they’d stop all together,” he said.
“From mining and manufacturing to construction and food production, natural gas is the backbone of WA’s economy. Hundreds of thousands of jobs rely on it.”
Mr Morey said today’s decision will provide certainty to the project’s proponents, as well as industry and the broader community.
“In 2024, the project supplied 14% of WA’s total domestic gas supply. Approval of the project’s extension will mean energy security can continue,” he said.
“But it’s much more than cooking and hot water. Gas helps to keep the lights on by supporting the electricity grid during demand surges like heatwaves.
“In WA, 40% of our drinking water comes from desalination plants, which rely on gas for specific processes.”
Mr Morey said the North West Shelf Project extension would also allow Australia to play an ongoing role in helping our regional neighbours to decarbonise.
“Gas has fewer carbon emissions than coal when used for electricity generation, which will be critical to helping some of the world’s rapidly industrialising nations reduce their carbon footprint,” he said.
“This approval will have an obvious economic benefit for Australia, with the royalty and excise revenue the project generates flowing back to communities.”
