What Murray Watt's North West Shelf gas decision means for Woodside's WA operations

Australia Broadcast Center

28-05-2025

It's one of the biggest liquefied natural gas plants in the world — and now Woodside has been given the go-ahead by the federal government to extend its massive Karratha Gas Plant.
But how did we get to this point and what are the implications of the North West Shelf (NWS) extension approval for energy supply, for the environment and for WA?
Here's what you need to know.
The Karratha Gas Plant is located close to a 50,000-year-old natural rock art gallery of more than a million petroglyphs spread across 37,000 hectares at Murujuga, also known as the Burrup Peninsula.
Woodside had permission to run the Karratha Gas Plant until 2030, but wants to extend that by 40 years.
To do so it will need access to gas reserves in the Browse Basin, about 400 kilometres off WA's north-west coast — a $30 billion plan it first began seeking approval for in 2018.
This is because the existing gas fields are running out.
Woodside says the development of new fields will "help to meet growing regional energy demand while also supporting decarbonisation of industries".
Woodside's NWS project operates under a variety of federal and state laws.
The company got state government approval for the extension in December 2024 after six years of assessment and appeals.
It's since opted to scale back its Browse proposal to reduce the impacts on Scott Reef and "reduce the environmental risk", amid fears it would be devastating to marine life.
This prompted WA's Environmental Protection Agency (EPA) to seek public input before deciding whether it needed to assess the new proposal.
Federal approval of the plant extension was delayed repeatedly by former environment minister, Tanya Plibersek, who pushed the date out to after the WA state election in March and then for a second time until May 31, after the federal election.
Environment groups have strongly opposed the project, citing concerns over climate impact, cultural heritage and marine biodiversity.
Murujuga is home to an estimated one million examples of rock art and carvings.
It has been on the Australian National Heritage List since 2007 and the federal government has applied to have the Murujuga Cultural Area to the World Heritage list.
But a UN report released this week indicated the World Heritage bid would be knocked back because of concerns about emissions from industry damaging the priceless rock art.
Some suggest the effect of emissions are so great, the rock carvings may be lost within 100 years.
The Climate Council said if the project was extended by 40 years, it would become "the most polluting fossil fuel project green-lit by the Albanese government" and would release the equivalent of more than a decade's worth of Australia's annual emissions.
"Our children won't be able to understand a decision to extend the North West Shelf for another half century, creating enormous carbon pollution, " Australian Marine Conservation Society CEO Paul Gamblin said.
Greenpeace WA said the NWS extension needed to be assessed for what it is — the centrepiece of Woodside's Burrup Hub.
"The primary purpose of Woodside's North West Shelf extension is to process gas from the Browse gas field underneath Scott Reef — the minister should be looking at these gas mega projects as a whole," Greenpeace's WA campaign lead Geoff Bice said.
The Karratha Gas Plant extension and Browse Basin development are considered separate developments under state and federal law.
According to Woodside, the NWS has contributed more than $40 billion in royalties and taxes over the past four decades.
The company is also a major employer in WA, with almost 900 direct employees and 1,300 contractors.
It's one of the biggest employers in Karratha, with more than 280 workers living locally.
WA Premier Roger Cook has supported the project's approval.
He said gas from the project would play an important role in helping WA "decarbonise", decommissioning coal-fired power stations and transitioning to renewable energy.
In December he described gas as a "smoothing fuel".
"We know that gas is going to play an important role in helping other countries get out of coal," he said.
Earlier this year, Mr Cook downplayed the need for state climate target legislation, arguing federal targets already commit the state to net zero by 2050.
"I'm not going to shackle Western Australia to legislation which damages our efforts to help the globe to decarbonise and reduce emissions," he said.
WA remains the only state without a 2030 emissions reduction target.
Gas supporters say expanding its use will lower emissions, but researchers say Woodside's Burrup Hub expansion alone would add almost as much greenhouse gas to the atmosphere as all of Australia's coal power stations.
The EPA is continuing to seek public consultation about Woodside's proposed changes to the Browse development until June 10.
If it ultimately assesses the amended proposal, it will prepare a report for WA's environment minister.
This is expected to be finalised by the end of the year.