Decision delayed on Woodside's gas extension in WA's north west for second time
A decision on whether to extend the life of the North West Shelf gas project in northern WA has been delayed. (ABC Pilbara: Charlie Mclean)
In short:
The federal government has delayed its decision on a proposal to extend the life of a major LNG project in WA's north for a second time.
Oil and gas giant Woodside says the latest delay on the future of the North West Shelf project is "extremely disappointing".
What's next?
The deadline for a decision has been extended until May 31, after the federal election.
The federal government has again delayed a decision to extend the life of a major liquefied natural gas (LNG) project in WA's north west.
Oil and gas giant Woodside Energy is looking to continue LNG production in Karratha, 1,500 kilometres north of Perth, until 2070.
It would be a major step in the company's plans to develop the Browse LNG project off WA's north coast.
After an initial delay until the end of March, federal Environment Minister Tanya Plibersek has delayed the decision for a second time until May 31, which will be after the federal election.
Woodside wants to keep producing LNG until 2070. (ABC Pilbara: Charlie Mclean)
Woodside said the latest delay was "extremely disappointing".
"We look forward to certainty for ongoing operations, which can support thousands of direct and indirect jobs, billions of dollars in taxes and royalties, and secure gas supply to Western Australia," a spokesperson said.
A spokesperson for Ms Plibersek's office said more time was required to make a decision.
"All projects follow the process as set out by the law put in place by John Howard's government," the spokesperson said.
Opposition claims delay politically motivated
WA Liberal Senator Michaelia Cash accused the government of being "sneaky" by dropping news of the delay on Tuesday night when media attention was concentrated on the budget.
She claimed the delay was politically motivated, suggesting the government did not want to make a call on the controversial project until after the election.
"No fanfare, no announcement, hoping that the people of Western Australia [wouldn't notice]," Ms Cash told the Senate.
"It is an absolute disgrace. It is an act of cynical political manipulation."
Senator Michaelia Cash said the timing of the announcement was politically motivated. (ABC News: Tabarak Al Jrood)
Federal Resources Minister Madeleine King denied the delay was about avoiding election blowback from left wing voters.
"The department requested an extension to consider the documentation. There's a lot of documentation as you'd expect," she told ABC Radio Perth.
"It's a very significant project. The government is well aware of its importance, but we're also well aware of the importance of proper decision making."
Project a concern for environmental groups
The extension is strongly opposed by climate and environment groups who say it will emit billions of tonnes of climate pollution across its lifetime and jeopardise global efforts to reach net zero.
The area is also home to a 50,000-year-old natural rock art gallery of more than 1 million petroglyphs spread across 37,000 hectares at Murujuga, also known as the Burrup Peninsula.
The project has drawn ire from environmentalists, with 770 appeals subsequently lodged with the state Environmental Protection Authority.
Protesters targeted the WA government's decision to provide state approval for the extension. (ABC News: Macey Turner)
The WA government gave the project the green light in December by then-state environment minister Reece Whitby, after a six-year approval process.
Gavin McFadzean, who runs the Climate and Energy program at the Australian Conservation Foundation, said he believed Ms Plibersek had more information to consider and called out the WA government's approval as "deeply flawed".
"We would argue the federal government should not make a decision before the election and needs more time to consider the environmental impact of this project before it goes ahead," Mr McFadzean said.
"The federal government has, quite rightly, several more questions to ask of the West Australian government in order to consider further information."
The WA government gave the extension the green light in December. (ABC Pilbara: Charlie Mclean)
Sector 'needs certainty'
Opposition Leader Peter Dutton vowed to fast-track approvals for gas projects if elected and place a statute of limitations on any activist groups that sought "reconsideration" of earlier federal government approvals.
Independent oil and gas industry analyst Jeanette Roberts said the "cumbersome" approvals process had decreased market confidence in Australia's energy sector.
"It just undermines investor confidence,"Ms Roberts said.
"Business wants certainty — and they want to understand what they can do when, what the ground rules are, and how they can manage those issues."
Ms Roberts said delaying the decision until after the federal election only complicated things further.
"It's not just the operator that's impacted," she said.
Loading..."Contractors, subcontractors, vendors, and other business are being frustrated."
The North-West Shelf Venture first produced domestic gas in 1984 after unearthing huge hydrocarbon reserves in the Carnarvon basin more than a decade earlier.
Fast forward to today, Woodside operates two LNG processing trains, storage tanks, a wharf for international export, three interconnected offshore platforms, and a 300-hectare third-party gas processing facility.
The Dampier to Bunbury pipeline supplies domestic gas across the state for residents and businesses and has been lauded as the affordable and reliable ship to navigate WA's energy transition.