Australia's political opposition, the Coalition, has promised to expedite a federal decision on extending permits for the 14.4mn t/yr North West Shelf (NWS) LNG project in Western Australia (WA).
The project is operated by independent oil and gas firm Woodside. Woodside lodged the proposal to extend NWS' lifetime to 2070 in 2018 and won WA state approvals in December 2024, but the federal Labor environment minister Tanya Plibersek postponed a decision on the plant to 31 March 2025. This may be delayed until after the election due before 17 May, as governments are not permitted make important rulings in what is known as the "caretaker period" between the dissolution of parliament and the swearing in of the new government.
The conservative Coalition has promised to reach a resolution within 30 days of being elected, citing the importance of bringing back investor certainty to the sector.
"We would expedite consideration of the NWS project as a matter of urgency because, unlike Labor, we recognise the significance of the NWS to the WA economy and the importance of secure and reliable gas supplies in pushing down energy prices," opposition leader Peter Dutton said on 19 March.
Woodside welcomes the Coalition's commitment to fast-tracking the approval, while acknowledging that the Labor government also understands the important contribution of NWS, a spokesperson told Argus.
The Coalition would also institute a national interest test as part of environmental approvals, requiring "strengthened consideration of the economic and social benefits of projects under environmental approvals" and introducing a 12-month timeframe under which third parties such as environmental lawyers can challenge earlier approvals after decision is made.
The Coalition and Labor government have been effectively tied in polls in recent months, within the typical margin of error. Labor will lose its majority in the house of representatives if it suffers a net loss of three seats at the election.
Permission for NWS to operate until 2070 is critical for Woodside's ability to progress the proposed 11.4mn t/yr Browse project to backfill the terminal, the firm said. The company is concerned that current approvals, which lapse in 2030, will not be extended under a minority government in which climate-focused independents hold the balance of power.
Greenhouse gas emissions from Browse are estimated to be 14.1mn-14.5mn t/yr of CO2 equivalent and require a carbon capture and storage plan to meet laws requiring net zero scope 1 emissions for new gas projects. Cultural heritage advocates are also concerned emissions from NWS and other Burrup Peninsula industrial facilities in WA may impact ancient petroglyphs located nearby.
