The Woodside Energy Group Ltd (ASX: WDS) share price is in the green today.
Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock closed yesterday trading for $21.31. In morning trade on Tuesday, shares are changing hands for $21.45 apiece, up 0.7%.
For some context, the ASX 200 is up 0.1% at this same time.
With the Brent crude oil price down a few cents to US$64.74 per barrel, the Woodside share price could be catching some tailwinds from the Federal government's pending decision on whether or not to green light the company's North West Shelf Project extension.
That decision is expected to be announced this week.
Image source: Getty Images
Woodside share price in focus on potential project extension approval
To give you a little background, the North West Shelf Project is located in Western Australia. It includes a network of offshore oil and gas infrastructure and an onshore processing facility. And it's been around for more than 40 years now, with investments to date totalling some $25 billion.
The Woodside share price got some support after the company received approval from the Western Australian state government for the project extension in December. That approval followed six years of assessment, and numerous appeals from environmental groups concerned over carbon emissions and potential negative impacts on Indigenous heritage.
Now it's up to the Federal government to decide on the future of the project and associated LNG export facility.
In a statement on its website, Woodside noted:
Woodside looks forward to the finalisation of the Federal approval process to provide certainty around the ongoing operation of the North West Shelf Project
By using existing infrastructure, the project can continue to support local and global energy security and regional development opportunities.
Will the Federal government extend the $25 billion gas project?
The Australian Financial Review reported this morning that a decision from the Federal government is expected within days, after cabinet received the final recommendation from the Department of Environment last week.
And following on some illuminating comments from Prime Minister Anthony Albanese, it looks like the Woodside share price could get a lift if the approval goes through, as now looks likely.
In an effort to strike a realistic middle ground in the climate battle, Albanese said:
It is net zero, not zero. You can't have renewables unless you have firming capacity, simple as that. You don't change a transition through warm thoughts…
You cannot have a shift to renewables without having confidence because you will lose community support if people walk into this room here and flick on the switch and the lights don't go on.
With the Woodside share price still down more than 22% over 12 months, the Federal decision on the North West Shelf Project extension will be one to watch.
