Highlights
- Federal extension granted for review of environmental conditions
- Concerns raised over emissions near culturally significant rock art
- Extension supports continued consultation between parties
Australia's energy sector is closely watching as Woodside Energy Group Ltd (ASX:WDS) receives additional time from the federal government to evaluate the proposed environmental conditions tied to extending the life of its North West Shelf gas processing facility in Karratha, Western Australia.
Extension of a Vital Energy Asset
The North West Shelf project is a key component of Australia’s LNG infrastructure. In late May, Environment Minister Murray Watt provided preliminary environmental approval for extending the facility’s operations from 2030 to 2070. However, the approval is subject to conditions, particularly regarding emissions that could affect nearby Murujuga rock art—an ancient and culturally rich heritage site.
Originally, Woodside had 10 business days to review and respond to these proposed conditions. This timeframe has now been extended to allow more in-depth consultation. The exact terms of the proposed conditions remain undisclosed, although they focus on mitigating air emissions that may impact the sacred site.
Cultural and Environmental Considerations
The Murujuga rock art—believed to be among the oldest and most significant petroglyphs globally—is under consideration for World Heritage listing. A draft decision from UNESCO recently expressed hesitation to advance this listing, citing potential environmental risks from industrial activities in the region.
Minister Watt emphasized the importance of cultural preservation during the preliminary announcement, stating that “adequate protection for the rock art is central” to the decision. This highlights the government’s intent to strike a balance between economic imperatives and cultural responsibility.
Collaborative Dialogue Underway
In response to the updated timeline, Woodside noted that both the company and the North West Shelf Joint Venture partners are engaged in ongoing discussions with the federal authorities. Their shared aim is to align the project’s future with national environmental expectations.
The Western Australian government had already granted environmental approval in December 2024 following a comprehensive six-year review and appeal process. That state-level greenlight was a major milestone, but federal alignment remains critical for the project's full progression.
With the extension granted, the stage is set for continued dialogue that may shape the future of one of Australia’s cornerstone gas infrastructure assets. The outcome could also influence how similar projects navigate environmental and cultural sensitivities moving forward.