North West Shelf approval a major boost for energy security
Woodside Energy’s North West Shelf Project extension received final Federal approval today, helping to secure more affordable and reliable energy for WA households and businesses.
North Rankin Complex, North West Shelf Project. Image: Woodside
The $30 billion project off WA’s north coast has been tied up in State and Federal approvals process for more than six years.
Having cleared its final regulatory hurdles, the project is set to move forward, with strict conditions around air emissions.
“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,” said Woodside Executive Vice President and Chief Operating Officer Australia Liz Westcott.
CCIWA Chief Economist Aaron Morey welcomed the decision, saying “natural gas is the backbone of WA’s economy”.
“Without a secure supply of gas, our industries wouldn’t just slow down – they’d stop all together,” he said. “Hundreds of thousands of jobs rely on it.”
A CCIWA review of the gas sector in March found gas was a crucial driver of WA’s competitiveness and revealed a shortfall could wipe $42b from the economy.
Decision provides energy certainty
Morey said today’s decision would 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.”
Key move to support energy transition
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.”
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