Australia approves Woodside's North West Shelf LNG Plant to operate until 2070

Australia approved Woodside Energy’s request on Wednesday to extend the lifespan of its North West Shelf Gas Plant until 2070. This follows a six-year process that was plagued by delays, complaints and criticism from environmental groups.

North West Shelf, located in Western Australia on the Burrup Peninsula, is Australia's largest and oldest liquefied gas plant. It also serves as a major supplier of LNG to Asian markets.

In a press release, Environment Minister Murray Watt stated that the decision to approve an extension of the project was subject to strict conditions. "This would include the impact on air emission levels of the operation."

Woodside's shares had been trading higher throughout the day, but after the announcement they jumped 4% to the afternoon.

The existing approval for the project was due to expire by 2030.

Woodside's application for an extension, submitted in 2018, was caught in the state and federal evaluation processes because of competing concerns about energy security and environmental impact.

This extension will allow Woodside, Australia’s largest gas producer, bring new gas fields on line to feed the LNG Plant. It is also expected to produce up to 4.3 Billion metric tons carbon emissions during its lifetime.

After considering almost 800 petitions from activists, the Western Australia state government approved the project in late December. The federal government delayed its decision twice in the run-up to the general election of May.

Woodside can now develop its long-dormant Browse offshore project, which will supply gas to Karratha's plant.

Woodside's North West Shelf partners are BP, Shell, Mitsui & Co, Mitsubishi Corp, Japan, and CNOOC.

(source: Reuters)