Labor delayed approving North West Shelf gas project extension beyond election to avoid 'alienating green-minded voters', MST Financial's Saul Kavonic declares

Sky News AU

5 days ago

The re-elected Albanese government delayed approving the 40 year extension of Woodside's North West Shelf gas project until after the election to avoid 'alienating any green-minded voters', a leading gas analyst has declared.
Newly appointed Environment Minister Murray Watt on Wednesday confirmed the government will extend the life of the project to 2070.
It follows the former minister Tanya Plibersek twice delaying the decision in 2025.
The project's approval was 'inevitable', according to MST Financial senior energy analyst Saul Kavonic, who argued Labor tactically postponed the decision.
'This approval was expected, indeed it was inevitable,' he told Sky News' Business Now.
'It was ultimately just delayed until after the election because Labor didn't want to risk alienating any green-minded voters.
'This had to be approved because otherwise the town of Karratha could have died and Australia would be left without about 10 per cent of its domestic supply at a time when the markets already forecast it to be tight.
'It would have been economically diabolical.'
Labor faced significant pressure from both industry and environmental groups to either approve or reject the gas project.
Following the election victory, Senator Watt rejected claims the government had attempted to shield itself from criticism by postponing the decision.
'That's not my understanding,' Senator Watt told Sky News Sunday Agenda, when asked whether the delay was aimed at protecting Labor's green flank.
'Of course, any of these decisions about big projects like this do require an enormous amount of evidence because they're really important decisions.'
Senator Watt said further information had been requested from parties involved in the application, which had in turn extended the timeline.
Labor attributed the pushback to delays with paperwork from the Western Australian government in February.
It was also reported Labor was waiting for more information about nearby Indigenous rock art from the United Nations Educational, Scientific and Cultural Organisation.
Mr Kavonic said the appointment of Senator Watt in the environment portfolio was a boon for local industry as it struggles with lengthy approvals processes.
'The positive side is the removal of Tanya Plibersek and replacing her as Environment Minister with Watt,' Mr Kavonic said.
'That's been a massive improvement for the approvals landscape because instead of Plibersek who was really beholden to inner-city green politics, we have Minister Watt who comes from Queensland, the resource state.
'Even though he's from the left faction, (he's) just inherently more pragmatic and hopefully this is a sign that we see less political interference and delaying approvals going forward.'
When the government approved the project, Senator Watt said the extension was 'subject to strict conditions' as the government gives significance to the potential impacts Woodside's activity could have on nearby ancient rock art.
Woodside CEO Meg O'Neill said the company has 10 working days to work with the department on the conditions.
"The conditions relate to heritage and air quality," Ms O'Neill told reporters on Wednesday.
"Our team is working through with the department to find out exactly what the conditions mean and we'll respond and work with the department over the coming days.'
Senator Watt's decision came just hours after UNESCO flagged it would knock back Australia's bid to add the Burrup Peninsula, located near the project, to the World Heritage List.
UNESCO deferred the decision back to the government to "ensure the total removal of degrading acidic emissions, currently impacting upon the petroglyphs of the Murujuga Cultural Landscape".
Ms O'Neill was asked about UNESCO's decisions, but deferred to the government for comment.