Australia Approves Extension for Woodside-Operated NWS Project

The Australian government has granted environmental approval to the Woodside-operated North West Shelf (NWS) project extension.

Minister for the Environment and Water Murray Watt said in a statement that the approval is subject to “48 strict conditions” to avoid and mitigate significant impacts on the Murujuga rock art, which forms part of Western Australia’s Dampier Archipelago.

“Specifically, I have imposed conditions that will require a reduction in certain gas emissions below their current levels, in some cases by 60 percent by 2030 with ongoing reductions beyond that,” Watt said.

The conditions should account for any new science achieved through the Murujuga Rock Art Monitoring Program and require the joint venture for the asset to comply with any air quality objectives and standards that are derived from the program, according to the statement. The project will be required to reduce its emissions every year and reach net zero greenhouse gas emissions by 2050.

Woodside and the NWS joint venture said they welcomed the Australian government’s final decision to grant environmental approval for the project.

The final government approval “followed an extensive assessment and appeal process and included rigorous conditions to manage the protection of cultural heritage,” Woodside COO Australia Liz Westcott said in a separate statement.

“This final approval provides certainty for the ongoing operation of the North West Shelf Project, so it can continue to provide reliable energy supplies as it has for more than 40 years,” Westcott said. “Over this time, the North West Shelf Project has paid more than [AUD 40 billion] in royalties and excise, supported thousands of Australian jobs and contributed well over [AUD 300 million] to communities in the Pilbara through social investment initiatives and infrastructure support”.

According to Woodside, the NWS project, one of the largest liquefied natural gas (LNG) projects in the world, has supplied more than 6,000 petajoules of domestic gas to provide power to homes and industry in Western Australia.

The North West Shelf consists of a number of active joint ventures. Woodside said its aggregate interest is 33.33 percent in all of the projects apart from the NWS joint ventures with CNOOC.

In December 2024, Woodside and Chevron Australia Pty. Ltd., an indirect subsidiary of Chevron Corp., entered into an agreement to swap assets including the Wheatstone and North West Shelf (NWS) gas projects.

Under the proposed transaction, Woodside will transfer its 13 percent non-operated interest in the Wheatstone Project and 65 percent operated interest in the Julimar-Brunello Project and will acquire in exchange Chevron’s 16.67 percent interests in the NWS Project and the NWS Oil Project, as well as a 20 percent interest in the Angel Carbon Capture and Storage (CCS) Project.

Chevron will also make a cash payment to Woodside of up to AUD 400 million, according to an earlier statement. The transaction is expected to close in 2026.

“The strategic and commercial rationale for this asset swap is compelling for Woodside,” Woodside CEO Meg O’Neill said. “This transaction simplifies our portfolio, improving our focus and efficiency by consolidating our position in our operated LNG assets. It is immediately cash flow accretive and includes a cash payment upon both execution and completion”.

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