Australia Approves Woodside North West Shelf LNG Plant Operation to 2070

Australia has approved Woodside Energy's proposal to extend the operational life of its North West Shelf liquefied natural gas (LNG) plant until 2070, following a six-year review process involving extensive environmental assessments, delays, and appeals from environmental groups. The North West Shelf facility, located on Western Australia's Burrup Peninsula, is the country's largest and oldest LNG plant and a key supplier to Asian markets. Environment Minister Murray Watt emphasized that the extension is subject to strict conditions, particularly regarding air emission levels, though the current environmental laws do not permit climate change impact to be a basis for approval or rejection. The project extension, which Woodside's partners include BP, Chevron, Shell, and others, is expected to result in significant carbon emissions and has sparked debate about Australia’s climate policies, especially since planned legislation to factor climate considerations into environmental approvals was withdrawn and will be rewritten. Woodside’s shares rose 4% following the announcement, reflecting market approval of the decision that also allows the development of new gas fields to supply the LNG plant. The extension is expected to have major implications for Australia's energy sector, LNG exports, and efforts to meet emissions reduction targets.