Woodside shares rise after government approves North West Shelf extension
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The news: Woodside Energy shares jumped after new Environment Minister Murray Watt gave preliminary approval for the energy giant to extend the operating life of its North West Shelf gas processing plant in Karratha, Western Australia beyond 2030.
The numbers: Woodside shares were up 3.4% to $22.15 at 2:20pm AEST, having shed 20% over the last 12 months. The stock led a rally by the wider energy sector, which added 2.8%.
The context: Watt said his proposed decision is subject to "strict conditions", including in relation to the impact of air emissions levels from the operation of an expanded on-shore Karratha gas plant. Woodside has 10 days to comment on the proposed approval before a final decision is made.
The oil and gas explorer applied for the controversial extension six years ago and secured WA government approval in December. Earlier this year, former federal environment minister Tanya Plibersek pushed back the deadline for the government's assessment until after the election.
The approval would extend the life of one of the world’s biggest liquified natural gas projects from 2030 to 2070, despite scientists and activists raising concerns about the plant's carbon emissions and the potential impacts on nearby ancient rock art.
The source: Environment Minister statement
