Editor’s note: This article was updated on February 26.
With a potential gas shortage threatening the WA economy, CCIWA is calling on the Federal Government to expedite the decision on the North West Shelf Project Extension.
North West Shelf Project. Image: Woodside Energy
As reported in the Financial Review on February 18, the Federal Environment Minister Tanya Plibersek extended the timeline to assess the Woodside Energy-led project.
The project has been awaiting approval for six years.
In December the WA Government approved the project, but the Federal approval has now been extended until at least March 31.
Federal approval will enable Woodside to operate its Karratha plant on the Burrup Peninsula until 2070 and continue processing gas through its existing infrastructure.
The project has supplied energy to domestic and international markets since the 1980s and pioneered Australia’s LNG industry.
The project has been opposed in Federal Parliament by the Greens and independents including WA MP Kate Chaney.
“The people who are opposing it, they’re just pro-coal,” Woodside CEO Meg O’Neill told The West Australian.
“At the end of the day, if the North West Shelf life approval isn’t extended, the outcome will be more coal in WA’s energy mix for longer.
“All these players claiming they care about the environment, it’s just not true.”
Industry needs certainty
CCIWA Chief Executive Peter Cock says a decision is needed to give certainty to the project’s proponents and the WA community.
“This is a critically important project for Western Australia’s economy,” he says.
“The companies that back major projects like this need certainty, and so does the West Australian community who will rely on the gas the North West Shelf Project will deliver over the coming decades.”
Gas is vital for WA industry
Cock says reliable gas supplies underpin much of WA’s industry and economic activity.
“Gas is absolutely central to industry in WA, including iron ore mining, manufacturing, construction, water desalination and products like fertilisers,” he says.
“It also provides affordable and reliable electricity to the grid, keeping the lights on during surges like heatwaves, with around half the carbon emissions of coal.
“The extension of existing operations at the North West Shelf Project will help secure Australia’s domestic gas supplies for decades to come, supporting our economy and keeping costs down for families.”
Cock also called on the Federal Government to reform the approvals system that has allowed the North West Shelf Project Extension to languish for so long.
“It is simply not rigorous or efficient to have state and federal approvals for projects like this running on different timelines,” he said.
“It doesn’t lead to better outcomes for the environment. It simply adds cost and complexity for investors and creates uncertainty for the economy.”
To be part of WA’s peak business organisation, get in touch via 1300 422 492 or [email protected].
