Woodside's mega North West Shelf Project gets extension approval

The North West Shelf Project now has long-term certainty to operate for more than another four decades.

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Key points

  • The North West Shelf Project Extension has secured a key Federal Government approval
  • Under the approval the project must reduce its emissions each year
  • The North West Shelf Project has already been producing gas for more than 40 years

The Federal Government has granted environmental approval for Australia's largest gas project, Woodside Energy Group Ltd (ASX: WDS)'s North West Shelf Project Extension, out to 2070.

The approval comes after an extensive consultation period, with Environment Minister Murray Watt imposing 48 conditions on the project to "avoid and mitigate significant impacts to the Murujuga rock art" in the area.

The additional conditions I have imposed add to those already set by the Western Australian Government. This will ensure that this project will be operated in a way that does not cause unacceptable impacts to the Murujuga rock art, in compliance with federal environmental law, including restricting air emissions which otherwise could have accelerated damage. Specifically, I have imposed conditions that will require a reduction in certain gas emissions below their current levels, in some cases by 60 percent by 2030 with ongoing reductions beyond that.

Mr Watt said the project would need to reduce its carbon emissions each year and reach net-zero greenhouse gas emissions status by 2050.

Woodside Chief Operating Officer Australia, Liz Westcott, said the final approval provided certainty for the project, which had so far supplied more than 6000 petajoules of domestic gas. This was the equivalent of enough power to supply a city the size of Perth for 175 years if used just for household electricity.

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. Over this time, the North West Shelf Project has paid more than A$40 billion in royalties and excise, supported thousands of Australian jobs and contributed well over A$300 million to communities in the Pilbara through social investment initiatives and infrastructure support.

Woodside shares finished Friday 3.39% lower at $24.22, on a broadly weaker day for energy stocks on the ASX.

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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