Australia has granted approval to Woodside Energy’s proposal to extend the operational lifespan of its North West Shelf gas plant until the year 2070.
This decision comes after an extensive six-year review process that was marked by considerable delays, multiple appeals, and strong opposition from environmental organisations, Reuters said in a report.
The approval allows the continuation of operations at the significant natural gas facility located off the coast of Western Australia for an additional period, extending its initial planned decommissioning date.
Review process
Woodside Energy, a major Australian petroleum and natural gas company, sought the extension for its flagship North West Shelf project, which has been a key supplier of liquefied natural gas (LNG) to global markets for decades.
The lengthy review process involved rigorous environmental impact assessments and consideration of stakeholder concerns, including those raised by green groups who voiced concerns about the project’s long-term environmental implications and its contribution to greenhouse gas emissions.
Despite these objections, the government ultimately sided with Woodside Energy, paving the way for continued gas production and export from the North West Shelf well into the latter half of the 21st century.
The extension is expected to have significant implications for Australia’s energy sector, LNG exports, and its efforts to meet emissions reduction targets.
Located on Western Australia’s Burrup Peninsula, the North West Shelf facility stands as Australia’s largest and oldest liquefied natural gas plant, playing a crucial role in supplying Asian markets.
Environmental concerns
Environment Minister Murray Watt said in a statement that the approval for the project extension would include stringent conditions, especially concerning the impact of air emission levels.
Following the announcement, Woodside shares experienced a 4% surge in the afternoon, building on gains made throughout the trading day.
The current project approval is scheduled to expire in 2030.
Woodside submitted its extension application in 2018, which became subject to both state and federal reviews. This was due to conflicting priorities concerning energy security and the project’s environmental consequences.
Australia’s leading gas producer, Woodside, is establishing the foundation to connect new gas fields to its LNG plant through this extension. This development is projected to release as much as 4.3 billion metric tons of carbon emissions throughout its operational lifespan.
Government decision and partnerships
The Western Australia state government granted approval for the contentious project in December, a decision reached after an extensive review process that included the consideration of approximately 800 appeals submitted by environmental activists and concerned citizens.
The sheer volume of appeals underscored the significant public interest and debate surrounding the proposed development.
Prior to the federal general election held in May, the federal government exhibited a cautious approach to the project, twice postponing its final decision.
Faced with declining production from its original offshore gas fields in the North West Shelf, a decades-long extension allows Woodside to proceed with the development of its long-dormant Browse offshore project, which will supply gas to the Karratha plant.
The North West Shelf venture is a partnership that includes Woodside and the following companies: BP, Chevron, Shell, Japan’s Mitsui & Co and Mitsubishi Corp, and China’s CNOOC.
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