The Australian federal government’s decision to postpone its assessment of the North West Shelf extension has drawn sharp criticism from energy industry leaders, who claim it jeopardises Western Australia‘s energy security and economic prosperity.
Australian Energy Producers Chief Executive Samantha McCulloch expressed frustration over the delay, stating: “After six years of environmental assessment and having secured state government approval, there is simply no justification for further regulatory delays.”
She argued that such open-ended and uncertain approval processes are deterring investment and damaging Australia’s reputation as a stable business environment.
The North West Shelf project, which has been powering Western Australian homes and industries for four decades, is seen as crucial for the state’s future energy needs.
The Australian Energy Market Operator has forecast potential gas shortfalls in Western Australia from 2030, underscoring the urgency of the project’s extension.
Western Australia’s gas industry plays a vital role in the state’s economy, providing:
- 54 per cent of WA’s primary energy
- 60 per cent of the state’s electricity
- $35 billion annual contribution to the WA economy
- Support for over 73,000 jobs
Additionally, natural gas supplies more than half the energy used by WA’s mining and minerals processing sector, while also supporting emissions reductions in the state and region.
An independent report by EnergyQuest has warned that without new gas investment, Western Australia could face severe consequences; running out of gas for electricity generation from the early 2030s and mining and industrial sectors left without gas from the mid-2030s.
McCulloch called on the federal government to provide certainty to the millions of Western Australian households and businesses that depend on gas, urging them to “rule out any further delays to this critical energy security project”.
The delay in approving the North West Shelf extension has reignited debates about Australia’s environmental laws and their impact on major infrastructure projects.
Industry leaders argue that streamlining these processes is essential for maintaining Australia’s energy security and economic competitiveness in the coming decades.
