Latest news with #NorthWestShelf
Sydney Morning Herald
20-07-2025
- Business
- Sydney Morning Herald
Gas is a gamble — and WA just doubled down
Premier Roger Cook says'Gas is good, like it or not.' It's a revealing remark—especially as Woodside's North West Shelf, Australia's largest gas project, has just been approved for a life extension out to 2070. That decision alone will lock in billions in gas-related investment for decades to come, shaping Western Australia's economic trajectory long after most of the world has moved on from fossil fuels. The message is clear: WA is doubling down on gas. But for many West Australians, this is starting to feel like a gamble with high stakes and few winners. It might be good for energy giants and shareholders, but for households, small businesses, and the state's long-term prosperity, the risks are mounting. We've been here before. When the mining boom collapsed around 2014, the pain wasn't limited to the Pilbara or Goldfields. Perth's housing market slumped, fly-in fly-out jobs disappeared, and state revenues fell off a cliff. The entire economy had been hitched to global commodities—and when prices crashed, so did WA's growth. Now, the same pattern is repeating. WA is a gas heavyweight—exporting 47 million tonnes of LNG last year and supplying around 60 per cent of Australia's gas. Yet despite its vast reserves and a 15 per cent domestic reservation policy, local households are still facing higher gas prices, driven not by local scarcity but by exposure to international markets. Since 2020, wholesale gas prices in WA have tripled, and consumers now face some of the highest retail gas prices in the country. If one of the world's most gas-rich jurisdictions—backed by a domestic reservation—can't deliver affordable gas to its own people, then the system clearly isn't working in the public interest. It's a glaring contradiction: vast local supply, a legislated carve-out, and yet rising costs for the very people the policy was meant to protect. International energy markets are growing more volatile, not less. Global demand is softening, supply is ramping up, and price swings driven by conflict or speculation are becoming the norm. Key buyers like Japan are cutting back their LNG imports whilst on-selling around half the gas we sell them, a sign that demand is not what it once was. China's LNG imports have fluctuated significantly since 2020. And yet, instead of planning for a diversified future, WA is entrenching its reliance on gas. The approval of the North West Shelf extension to 2070 isn't just a regulatory tick—it's a signal to markets, governments and financial institutions that WA intends to stay in the gas game for the long haul. That decision will direct capital, infrastructure and political energy toward propping up a sector that faces deep structural risk—not just from climate constraints, but from basic economics. The danger isn't only environmental. It's economic. Every new dollar committed to gas is a dollar not invested in emerging industries like clean energy manufacturing, critical minerals processing, green hydrogen, green ammonia or green iron. While other states and countries build competitive advantage in renewables and advanced manufacturing, WA is backing an industry that's losing momentum and market certainty. This is the real missed opportunity. WA has what it takes to lead in the clean economy—land, labour, minerals, world-class ports and skilled workers. But for too long, successive governments have prioritised resource exports over building sovereign capability. The result is a lopsided economy, vulnerable to global shocks, and increasingly disconnected from where the world is heading.
The Age
20-07-2025
- Business
- The Age
Gas is a gamble — and WA just doubled down
Premier Roger Cook says'Gas is good, like it or not.' It's a revealing remark—especially as Woodside's North West Shelf, Australia's largest gas project, has just been approved for a life extension out to 2070. That decision alone will lock in billions in gas-related investment for decades to come, shaping Western Australia's economic trajectory long after most of the world has moved on from fossil fuels. The message is clear: WA is doubling down on gas. But for many West Australians, this is starting to feel like a gamble with high stakes and few winners. It might be good for energy giants and shareholders, but for households, small businesses, and the state's long-term prosperity, the risks are mounting. We've been here before. When the mining boom collapsed around 2014, the pain wasn't limited to the Pilbara or Goldfields. Perth's housing market slumped, fly-in fly-out jobs disappeared, and state revenues fell off a cliff. The entire economy had been hitched to global commodities—and when prices crashed, so did WA's growth. Now, the same pattern is repeating. WA is a gas heavyweight—exporting 47 million tonnes of LNG last year and supplying around 60 per cent of Australia's gas. Yet despite its vast reserves and a 15 per cent domestic reservation policy, local households are still facing higher gas prices, driven not by local scarcity but by exposure to international markets. Since 2020, wholesale gas prices in WA have tripled, and consumers now face some of the highest retail gas prices in the country. If one of the world's most gas-rich jurisdictions—backed by a domestic reservation—can't deliver affordable gas to its own people, then the system clearly isn't working in the public interest. It's a glaring contradiction: vast local supply, a legislated carve-out, and yet rising costs for the very people the policy was meant to protect. International energy markets are growing more volatile, not less. Global demand is softening, supply is ramping up, and price swings driven by conflict or speculation are becoming the norm. Key buyers like Japan are cutting back their LNG imports whilst on-selling around half the gas we sell them, a sign that demand is not what it once was. China's LNG imports have fluctuated significantly since 2020. And yet, instead of planning for a diversified future, WA is entrenching its reliance on gas. The approval of the North West Shelf extension to 2070 isn't just a regulatory tick—it's a signal to markets, governments and financial institutions that WA intends to stay in the gas game for the long haul. That decision will direct capital, infrastructure and political energy toward propping up a sector that faces deep structural risk—not just from climate constraints, but from basic economics. The danger isn't only environmental. It's economic. Every new dollar committed to gas is a dollar not invested in emerging industries like clean energy manufacturing, critical minerals processing, green hydrogen, green ammonia or green iron. While other states and countries build competitive advantage in renewables and advanced manufacturing, WA is backing an industry that's losing momentum and market certainty. This is the real missed opportunity. WA has what it takes to lead in the clean economy—land, labour, minerals, world-class ports and skilled workers. But for too long, successive governments have prioritised resource exports over building sovereign capability. The result is a lopsided economy, vulnerable to global shocks, and increasingly disconnected from where the world is heading.
SBS Australia
14-07-2025
- General
- SBS Australia
Australia insists industry and rock art 'can coexist' after heritage listing of ancient site
Murujuga, a peninsula in north-west WA near Karratha, contains the world's largest collection of rock art engravings. Environment Minister Murray Watt recently gave provisional approval to an extension of a nearby gas and oil project. There are concerns the project could seriously degrade the Aboriginal rock art engravings. Environment Minister Murray Watt says the recent World Heritage listing of an ancient Indigenous rock art site will not influence the government's final decision about an extension of a contested gas project in the area. Murujuga, a peninsula in north-west WA near Karratha, contains the world's largest collection of rock art engravings, known as petroglyphs, with some of its one million pieces estimated to be more than 50,000 years old. It's also home to two gas plants, a fertiliser plant and iron ore and salt export facilities. In May, Watt gave conditional approval to an extension of oil and gas production company Woodside's North West Shelf project to 2070. The project, Australia's largest gas and oil development, includes Woodside's Karratha Gas Plant, adjacent to Murujuga on the Burrup peninsula. There are concerns that the project's continuation and subsequent pollution will cause significant damage to Indigenous rock art in the area. 'Industry can coexist with rock art', Watt says On Monday, when asked if the site's World Heritage listing could influence the final decision on the Woodside extension, Watt said it wouldn't. "No, it won't apply to any decisions that are currently underway or that have happened previously", Watt told ABC's RN Breakfast radio program. Murujuga contains the world's largest collection of rock art engravings, known as petroglyphs. Source: Supplied / Save Our Songlines The environment minister said the decision meant any future development in the precinct would need to comply with World Heritage rules. He also said that it was clear "industry can coexist with rock art". "I said that we would be applying strict conditions, and preservation of the rock art was central to my decision [to provisionally approve the North West Shelf extension] when I made that a few weeks ago," Watt told ABC. "But I guess this is also a way of keeping future governments and future industry honest, to make sure that it does have this extra layer of protection against any inappropriate development in the future." Watt visited UNESCO'S headquarters in Paris ahead of the listing, saying it would ensure stronger legal protections for the more than a million pieces of rock art. The site was previously put forward to UNESCO for listing in 2023, with the application referred back in May this year. In its decision to list Murujuga, UNESCO recommended that both state and federal government address concerns that nearby acid emissions — including from Woodside's Burrup gas hub — were degrading the art. But it stopped short of implementing recommendations by the International Council on Monuments and Sites (ICOMOS) — an advisory body which offers guidance to UNESCO on heritage sites. The association had recommended that the World Heritage listing be deferred until Australia detailed how it would eliminate "harmful acidic emissions that currently affect the petroglyphs". There are concerns that nearby acid emissions are degrading the rock art at Murujuga. Source: Supplied / Save Our Songlines The government responded by saying the recommendation was driven by "factual inaccuracies", and successfully argued concerns would be met and that Murujuga should be heritage-listed immediately. Mardathoonera woman and Murujuga traditional custodian Raelene Cooper, who was at the UNESCO meeting, welcomed the World Heritage listing but criticised the removal of recommended protections, including halting industry expansion. "Today, Australia rewrote the World Heritage listing in the interests of the gas industry," she said. "Global scrutiny will now be applied to what is happening at Murujuga," Cooper said. "You cannot have industry and culture coexist. It's never happened. It never works." Shortly after Watt granted provisional approval to the North West Shelf extension, Cooper launched legal action to try and protect the site. Mardathoonera woman and Murujuga traditional custodian Raelene Cooper said Australia had rewritten the World Heritage listing in the interests of the gas industry. Source: AAP / Dan Himbrechts The Greens welcomed Murujuga's World Heritage listing on Friday but warned that the world was watching and urged Watt to reconsider the draft approval. "UNESCO had warned that Woodside's gas plant threatened the longevity of the rock art prior to the listing, but Minister Watt successfully lobbied other nations when he should have simply rejected Woodside's climate bomb extension in the first place," Greens leader Larissa Waters said in a statement. The nomination process was driven by the Murujuga Aboriginal Corporation (MAC) on behalf of Traditional Owners the Ngarda-Ngarli. MAC chair Peter Hicks said on Friday it had been an "Indigenous-led process" in partnership with state and federal governments, thanking them for undertaking their roles "without undermining Indigenous decision-making within the process". Could industrial pollution damage rock art? Last month, a study out of Germany's Bonn University said the industrial emissions from the facilities cause lower pH and higher acid levels in the local rainwater and on the rock surfaces. "The rock varnish on petroglyph-bearing rocks from Murujuga is highly likely impacted by local industrial pollution, with weathering rates most likely already accelerated due to the lower pH of the rainwater," the study said. — With additional reporting by the Australian Associated Press.
ABC News
21-06-2025
- Business
- ABC News
Budget reveals WA oil and gas royalties shrinking as North West Shelf earnings drop
When the nation's largest mainland gas project was given provisional approval to keep running until 2070, the West Australian premier heralded it as an economic boost for the state. "It's not just important for our overall economy, it's important for regional WA," Roger Cook told reporters. But the most recent state budget papers show the shared revenue, or royalties, the project is generating for WA is in rapid decline. A royalty is a fee charged for the right to extract a mineral resource. In the 2022-'23 financial year, royalties from the North West Shelf (NWS) gas project on WA's north-west coast, delivered more than $1.3 billion to the state's coffers. That number is now tipped to drop by more than 70 per cent to $365 million in the 2025-'26 financial year. That amounts to 0.7 per cent of the state's $50.2 billion revenue, and just 6 per cent of the $6.6 billion generated by iron ore royalties. The drop in revenue is because the project's original gas fields are depleting. When the NWS began production in 1984, it was required to give 10 per cent of the revenue from each gas well to the Commonwealth. A legal change four years later meant future offshore projects would not pay royalties, but a 40 per cent tax on profits, known as the Petroleum Resource Rent Tax (PRRT). Two-thirds of the revenue from the NWS is redirected to WA. But as those gas fields deplete, so does their revenue, and there have been new gas sources processed at the NWS since 1988 that do not generate royalties. "The North-West Shelf project [is] forecast to process higher volumes of gas sourced from areas outside the revenue-sharing agreement," the 2025-'26 state budget papers read. Principal adviser to progressive think-tank The Australia Institute Mark Ogge said he had not seen any evidence the new gas sources required to extend the NWS would have royalty agreements attached to them. "Australia is being robbed of its resources and our governments are entirely complicit," he said. Mr Ogge said West Australians reading the latest budget should be outraged. Oil and gas analyst and consultant Jeanette Roberts believed it was likely new revenue-sharing agreements would be signed if the NWS extension was finalised. "I think that's the most likely scenario," Ms Roberts said. A spokesperson for Environment Minister Murray Watt would not comment on whether royalties had featured in the negotiations over the NWS extension because the decision was not final yet. Ms Roberts pointed said the oil and gas industry made other contributions to the Australian economy through taxes. "Tax is more than just Petroleum Resource Rent Tax and state royalties, it's also GST, corporate taxes, a whole bunch of contributions gas companies pay," she said. The industry's peak lobby group, Australian Energy Producers, claimed the sector paid $17 billion in taxes and royalties nationally in the 2023-'24 financial year. A spokesperson for Woodside, which manages the NWS, said the project had contributed $40 billion to Australia since beginning production in 1984. "Including more than $18 billion to the WA government," the spokesperson said. They would not comment on any future royalty-sharing agreements. According to the Australian Taxation Office's corporate tax transparency report, the company paid $2.6 billion in income tax in the 2022-'23 financial year. Mr Ogge from the Australia Institute said the public should still expect more from the industry given there were large offshore gas fields near WA where royalties were not being charged. "Vast amounts of gas are processed in Western Australia from offshore fields and exported, making tens of billions of dollars every year for these companies," he said. "I just cannot understand why the federal government doesn't charge royalties on the vast majority of gas being exported from Western Australia." Treasurer Jim Chalmers was approached for comment but did not directly respond to questions. Last year, the federal government made changes to the PRRT, which it claims has brought in more tax revenue from the oil and gas sector.
West Australian
19-06-2025
- Health
- West Australian
Angela Pownall: I got rid of my gas cooktop because research shows it's harmful to our health
Australia may have cemented its love affair with gas with the recent extension of Woodside's North West Shelf project in WA until 2070, but at home I've said goodbye to gas. I hadn't given much thought to my gas cooktop until recently. It was old and a bit grubby but its replacement certainly wasn't at the top of my to-do list around the home. Until I read a new US study which found that high gas stove usage at home without proper ventilation 'greatly increases cancer risks.' Even more worrying is the finding that children's cancer risk by gas stove exposure is almost double than that for adults. Scientists from Stanford University measured the emissions from gas cooktops in 87 American kitchens. They also tracked the pollutants' spread to other rooms and measured how long they lingered in other parts of the house, including bedrooms which was of particular concern, given we spend a third of our lives in bed. High-efficiency ventilation was found to substantially reduce benzene exposure, but the report authors said there is no safe limit for long-term exposure. Research findings like this are not new, with the Stanford report citing previous studies showing that exposure to gas and propane stoves is harmful to human health under certain conditions. And that combustion produces numerous pollutants, including nitrogen dioxide (an irritant that causes respiratory disease and aggravates asthma), carbon monoxide (which reduces the blood's ability to carry oxygen), formaldehyde and benzene (which are both known human carcinogens). With a toddler at home, the guilt of my ignorance about this weighed heavily on me. Thankfully it was a quick and easy process to swap over to an electric cooktop, and switch off my gas supply. According to Energy Consumers Australia, disconnecting from the mains gas network will save me nearly $400 a year on my energy bill . Energy Consumers Australia's latest survey showed only 24 per cent of West Australians are planning to cancel their gas supply within the next 10 years — the lowest in the country. But I suspect many more would consider it if they were aware of the health risks of gas cooktops. Why aren't our government health departments and health promotion organisations alerting the public to these dangers? The ACT and Victorian governments have implemented policies to prevent new residential mains gas connections. While stating this is being done to reduce fossil fuel emissions, there will be long-term health benefits for generations of residents. Unfortunately WA is not moving in the same direction. WA Premier Roger Cook said in 2023 WA would not follow Victoria in banning gas connections to new homes. It's a stance that needs to change in response to mounting evidence that gas cooktops pose an unnecessary risk to health, particularly that of our children.
