The approval of a massive gas project extension has emboldened the industry, but traditional owners and environmental advocates are vowing to maintain their rage.
Woodside was given the green light by the federal government on Wednesday to keep operating a gas processing plant in Karratha as part of its North West Shelf project until the 2070s.
The Australian energy giant still has to accept conditions around heritage and air quality at the project on Western Australia’s Burrup Peninsula, home to ancient rock art, before the approval is made official.
But after years of delay, the decision by new environment minister and Queensland senator Murray Watt represents an endorsement of the sector by the Labor government.
Woodside chief executive Meg O’Neill said the conversation in Australia had evolved to recognise the role of gas in smoothing out the energy transition.
“The renewables rollout is not going as fast as had initially been anticipated, and we need to make sure that we’re tackling those cost-of-living pressures that were such an important issue at the most recent election,” she told reporters.
“Increased supply of natural gas is part of the solution to help bring those power prices down.”
Saul Kavonic, an energy expert with advisory firm MST Marquee, said there was hope within the gas industry that the poor performance of the Greens in the election would allow the government to take a more investment-friendly approach.
“But the truth is, the industry is waiting to see if actions follow words,” Mr Kavonic told Sky News.
“Overall, the investment landscape in Australia is still seen as quite challenging, particularly compared to alternatives that investors can invest in, places like Texas and Louisiana in the United States.”
Replacing former environment minister Tanya Plibersek, who was vulnerable to the Greens in her inner-city Sydney electorate, with Senator Watt had been a “massive improvement for the approvals landscape”.
Legal challenges could still jeopardise the project, which Woodside says contributes more than 2000 direct jobs and has paid more than $40 billion in taxes over the past four decades.
Mardathoonera woman Raelene Cooper launched a last-minute legal bid to stop the project in the Federal Court, and indicated she would continue her fight following Senator Watt’s decision.
It came just hours after the United Nations said industrial development at Karratha threatened nearby Aboriginal rock art, likely sinking Australia’s attempts to secure heritage listing for the carvings if the extension goes ahead.
Ms O’Neill said Woodside had worked closely with traditional custodians for more than 40 years.
“Whilst we haven’t always gotten it right, we have very strong working relationships now, and we support the World Heritage listing, and we believe industry and heritage can coexist,” she said.
Woodside faces more approval hurdles.
The existing gas fields that feed the plant will run out in the 2030s, so Woodside is hoping to tap into the nearby Browse Basin, which could provide Karratha with decades more gas through an undersea pipeline.
Ms O’Neill said the North West Shelf extension would still be worth it without Browse, because it also processes gas from other shippers, but Browse would be particularly important for domestic energy security beyond the 2030s.
“So we will continue to work with the states, the EPA and the Commonwealth department of environment on those Browse approvals,” she said.
But the massive gas field has also become a target for environmental activists, who claim it would produce 1.6 gigatons of carbon emissions over its 50 year project life.
Australian Conservation Foundation CEO Kelly O’Shanassy vowed to keep fighting the proposal.
“ACF and many others will continue to vigorously oppose the expansion of the gas industry, including the exploitation of the Browse climate bomb gas field at Scott Reef,” she said.
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