North West Shelf Project Extension Could Unlock Continued A$40 Billion Royalties

A Vote of Confidence in Australia's Energy Backbone

Woodside Energy Ltd and the North West Shelf Joint Venture have publicly welcomed the Australian Federal Government’s proposed decision to extend the environmental approval for the North West Shelf Project. This move is pivotal in securing the ongoing operation of one of Western Australia’s most significant energy assets, which has been a cornerstone of the region’s energy supply and economic development for over four decades.

Since commencing operations in 1984, the North West Shelf Project has not only provided reliable and affordable energy domestically but has also been a substantial contributor to the Australian economy, paying more than A$40 billion in royalties and taxes. The project supports thousands of direct and indirect jobs, underpinning regional development in the Pilbara and broader Western Australia.

Balancing Energy Needs with Environmental and Cultural Responsibilities

The proposed extension comes with a suite of rigorous environmental conditions designed to manage and mitigate the project’s impact. These include commitments to reduce greenhouse gas emissions, improve air quality, and protect cultural heritage sites, particularly those significant to the Murujuga Traditional Owners. Woodside has emphasized its ongoing collaboration with Traditional Custodians, aiming for a science-based, respectful coexistence that honours cultural values while enabling continued energy production.

Environmental management measures are set to be implemented in consultation with local communities and stakeholders, reflecting a broader industry trend towards sustainability and social responsibility. The project’s compliance with air quality standards and the introduction of monitoring programs underscore this commitment.

Economic and Community Impact

Beyond energy supply, the North West Shelf Project has been a significant driver of social and community investment, with over A$300 million invested in infrastructure and community programs in the Pilbara and Karratha regions. The project’s energy output powers more than 6,000 petajoules domestically, enough to supply the electricity needs of a city the size of Perth for 175 years, highlighting its critical role in Western Australia’s energy landscape.

Woodside’s Executive Vice President and Chief Operating Officer, Liz Westcott, underscored the national significance of the project, noting that the proposed approval would provide certainty for ongoing operations and the thousands of jobs it supports. The extension is seen as a positive signal for energy security and economic stability in the region.

Looking Ahead

While the proposed extension is a welcome development, it remains subject to final government approval and potential appeals. The detailed conditions attached to the approval will require careful management to balance operational efficiency with environmental and cultural obligations. Investors and stakeholders will be watching closely as Woodside navigates this next phase, ensuring the project continues to deliver value while meeting evolving regulatory and community expectations.