Woodside Energy’s request for an extension until 2070 of the life of its North West Shelf LNG facility has been granted approval by the Australian government, Reuters reported on May 28.

The approval brings an end to a drawn-out procedure that lasted for six years, handcuffed by delays, appeals, and pushback by environmental groups.

Without the approval, Woodside’s licence for the North West Shelf would have expired in 2030.  

In granting the approval, Environment Minister Murray Watt stated that the project’s extension was given the green light after careful consideration and the enactment of strict conditions, “particularly relating to the impact of air emissions levels”.

The 16.9mn tonnes per year (tpy) facility, located on the Burrup peninsula in Western Australia has come under the microscope amid concerns that emissions from the plant could damage ancient rock art.  

A UN advisory board warned that the Murujuga landscape was at risk from industrial pollution from Australia’s oldest LNG facility.

"I have ensured that adequate protection for the rock art is central to my proposed decision," Watt declared.

Woodside now has 10 days to respond to air quality conditions and cultural heritage management before a final decision is made by the Environment Ministry.

The approval comes as welcome news to Woodside, particularly as Australia grapples with increased skepticism among investors in its and gas sector, who have become nervous of increased regulatory and policy intervention.

A May report by Wood Mackenzie, commissioned by the Australian Energy Producers, found that while global investment in gas exploration has climbed by almost 30% in the past five years, Australia has seen growth of only 15%.

In a survey of chief executives from companies operating in Australia’s gas industry, the report, "Australia's Natural Gas Investment Competitiveness," also found that 95% of respondents viewed the country as a less attractive destination for investment than five years ago.

The same percentage also stated that recent policy changes had directly impacted investment decisions.

Nevertheless, with this regulatory hurdle cleared, Woodside now has the green light to bring online new gas fields to provide natural gas to the North West Shelf facility, one of which is expected to be the Browse offshore project

In December, Woodside acquired Chevron’s 16.67% interest in the North West Shelf project to bring its stake in the project up to 50%.