North West Shelf Project
| Company type | Joint venture |
|---|---|
| Industry | Oil and gas industry |
| Founded | 1980s |
| Headquarters | Karratha , Australia |
Area served | Western Australia (domestic), international (LNG exports) |
Key people | Woodside Energy (operator) |
| Products | Natural gas, condensate, liquefied natural gas (LNG) |
| Owner | BHP, BP, Chevron, Shell, Woodside Petroleum, Mitsubishi-Mitsui joint venture (each initially one-sixth; Woodside now one-third after 2022 merger) |
Number of employees | Not specified |
| Parent | None |
The North West Shelf Project (NWS), also referred to as the North West Shelf Venture, represents Australia's most extensive resource development initiative focused on offshore natural gas extraction from the North West Shelf region off Western Australia. Active since the 1980s, the project encompasses offshore petroleum production—primarily natural gas and condensate—utilizing production platforms and onshore processing facilities at the Karratha Gas Plant. This plant, situated on the Murujuga Cultural Landscape (Burrup Peninsula) and operated by Woodside Energy, supplies natural gas for industrial, commercial, and residential consumption within Western Australia. While approximately 15% of the state's gas demand is fulfilled domestically, the majority of output is exported internationally in the form of liquefied natural gas. Notably, no gas is supplied to the eastern states.
Ownership of the project is structured as a six-party joint venture, consisting of BHP, BP, Chevron, Shell, Woodside Petroleum, and a 50:50 joint venture between Mitsubishi and Mitsui & Co, each holding an equal one-sixth stake. Woodside functions as the operator. Following a merger in June 2022 between BHP Petroleum and Woodside Energy, Woodside’s share increased to one-third ownership.
During 2020–2021, the NWS was identified as Australia's largest industrial source of greenhouse gas emissions. Originally slated for decommissioning by 2030, the federal government provisionally authorized an operational extension to 2070 in May 2025. This approval is conditional upon undisclosed requirements and awaits Woodside’s formal response, amid ongoing environmental and cultural objections.
Overview
The North West Shelf Project involves extracting petroleum resources—chiefly natural gas and condensate—from offshore platforms, with processing carried out onshore at the Karratha Gas Plant located on Burrup Peninsula under the management of Woodside Energy. Also known as the North West Shelf Venture or simply NWS, it ranks among the globe’s largest liquefied natural gas undertakings and plays a vital role as a regional employer. The project’s operations depend heavily on extensive hydrocarbon reserves found within the Carnarvon Basin.
History
Significant gas deposits were uncovered during the early 1970s at fields such as North Rankin, Goodwyn, and Angel within the Carnarvon Basin. Overcoming technical difficulties required unprecedented capital investment beginning in the early 1980s. By the late 1980s, this initiative had become the world’s largest engineering endeavor. With cumulative investments reaching A$25 billion since its inception, it remains Australia’s largest resource development project as of 2025.
The initial phase involved establishing the North Rankin A offshore platform, constructing a submarine pipeline to Mermaid Sound near the Port of Dampier, and building infrastructure to supply domestic gas via pipelines to cities including Perth and Bunbury. Export facilities for condensate were also developed during this stage. The subsequent phase expanded capacity by adding two LNG processing trains, storage tanks, export terminals, and LNG carriers.
In recognition of its engineering significance, these developments were awarded an Engineering Heritage International Marker by Engineers Australia in 2012.
Ownership was originally divided equally among six partners in a joint venture: BHP, BP, Chevron, Shell, Woodside Petroleum, alongside a joint venture equally held by Mitsubishi and Mitsui & Co. Woodside acted as project operator throughout. Following BHP’s Petroleum division merging with Woodside Energy on 1 June 2022, Woodside’s equity share rose to one-third.
In 2019, Woodside and its partners proposed extending operational life spans for existing facilities including the Karratha Gas Plant. After six years of evaluation, federal Environment Minister Murray Watt granted approval on 28 May 2025 for continued operations until 2070 despite opposition from Traditional Owners and environmental groups. Due to declining output from current gas fields, new reserves located in the Browse Basin, approximately off Western Australia’s northwest coast, must be developed. Woodside began seeking regulatory consent for this expansion in 2018 after abandoning an earlier onshore Browse LNG project at James Price Point in 2013 because of economic feasibility issues and community resistance. A floating LNG facility is now being considered as an alternative development approach.
Prime Minister Anthony Albanese emphasized that extending gas supply capabilities is crucial to underpinning Western Australia’s renewable energy transition by providing "firming capacity" that encourages further investment.
Technical obstacles include managing high carbon dioxide concentrations present in Browse Basin gas reserves. This necessitates expensive carbon capture and storage solutions to comply with emissions reduction targets. Woodside defends expanding NWS operations by arguing that without increased gas production, Australia would become more dependent on coal-fired power—a rationale challenged by energy experts such as Josh Runciman from the Institute for Energy Economics and Financial Analysis.
Offshore Installations
The operation manages four offshore platforms:
North Rankin A (NRA)
Commissioned in 1984, North Rankin A was the largest gas production platform worldwide at the time of its launch, delivering 1,815 million cubic feet (51.4 million m³) of gas daily alongside up to 47,400 barrels of condensate per day. Subsequent capacity upgrades have boosted production by 50%, preserving its position among the top gas platforms globally. Situated 135 km northwest of Dampier, it accommodates over 120 staff and supports 25 wells in the North Rankin and Perseus fields. Together with North Rankin B and two export pipelines, it constitutes the North Rankin Complex (NRC).
Goodwyn A (GWA)
Commissioned in early 1995 with an investment of $2 billion, Goodwyn A represented Australia's largest single offshore oil and gas project at that time. In 2001, a 23 km pipeline connected it to the Echo/Yodel fields. Hydrocarbons extracted at Goodwyn are transported via subsea pipelines to North Rankin for processing at Karratha. The platform hosts up to 30 wells (19 currently active), including five re-injection wells, and supports a workforce of 137 personnel. Its daily production capacity reaches 32,000 tonnes of gas.
Cossack Pioneer Floating Production Storage and Off-loading (FPSO)
Commissioned in late 1995, this FPSO can produce up to 50,000 barrels of crude oil per day, transferring oil through flexible lines to moored tankers. Located 34 km east of North Rankin A, it connects subsea wells from the Wanaea, Cossack, Lambert, and Hermes fields. The vessel has storage capacity for 1.15 million barrels and a maximum production capability of 150,000 barrels per day. In May 2008, plans were unveiled to replace the FPSO to sustain oil production through the period from 2025 to 2030.
North Rankin B (NRB)
Approved in March 2008 with an investment of A$5 billion under the North Rankin 2 initiative, NRB was commissioned in 2013 in waters approximately 125 meters deep. Connected to North Rankin A by two bridges, its main function is gas compression and condensate pumping from NRA wells for export via NRA facilities.
Karratha Gas Plant and Shipping
The Karratha Gas Plant, established during the 1980s in Karratha, initially included multiple LNG production trains. Capacity expanded in 2008 with the addition of a fifth LNG train, raising throughput to 16.3 million tonnes annually. This plant processes gas destined for export as well as supplying domestic consumers and industries within Western Australia (WA). Additionally, it handles condensate recovered during gas processing.
Supporting infrastructure includes LNG and condensate loading facilities at Withnell Bay—comprising jetties, storage tanks, and related assets—operated under the auspices of the Dampier Port Authority. Shipping is conducted by a fleet of specialized LNG carriers powered by gas vapor-driven steam turbines, managed by the subsidiary North West Shelf Shipping Service Company Pty Ltd.
Exports
The inaugural LNG shipment was dispatched to Japan in 1989. By 2008, approximately 200 shipments per year—exceeding seven million tons—were transported worldwide using dedicated LNG carriers. Major destinations include long-term clients in Japan alongside spot market buyers in China, Spain, South Korea, and the United States.
In 2002, a significant $25 billion agreement was finalized to supply China with three million tonnes of LNG annually over a quarter-century. This fixed-price contract guaranteed prices until 2031, leading China to pay substantially less than Australian consumers amid rising global LNG prices.
Domestic consumption
By 2008, the operation had become Western Australia's leading domestic gas supplier, responsible for roughly 65% of the state's total production. Gas from Karratha is delivered to southern Western Australia customers via the Dampier to Bunbury Natural Gas Pipeline. Domestic gas sales are managed by the subsidiary North West Shelf Gas Pty Ltd through private agreements and transactions with Alinta.
Western Australia remains disconnected from the National Electricity Market and the gas pipeline networks of the eastern states; consequently, its gas output does not influence prices in other parts of Australia. The state requires producers to allocate 15% of their production for local consumption; however, as of June 2025, this quota was not met.
Indigenous rock art
During the 1980s construction phase of the Karratha Gas Plant, approximately 5,000 sacred rock art sites were destroyed, representing one of the most significant losses of Aboriginal cultural heritage in Australia. The facility borders a 37,000-hectare natural gallery at Murujuga that contains over a million petroglyphs dating back 50,000 years.
A land access agreement was reached in 1998 with the Ngarluma and Yindjibarndi peoples; however, by that time, the plant had already been operational for more than ten years and substantial damage to sites had occurred. Traditional Owners have sought to renegotiate this agreement, highlighting that the Elders who consented initially lacked English literacy and full comprehension of the terms.
In 2023, Woodside CEO Meg O'Neill publicly admitted Woodside’s involvement in the destruction of sacred Murujuga rock art connected with the Burrup Hub mega-project. This acknowledgment covered earlier stages including both the Karratha Gas Plant and Pluto LNG facility. O'Neill characterized these removals as "culturally appropriate at the time," a statement strongly refuted by Indigenous leaders such as Raelene Cooper, former Chair of the Murujuga Aboriginal Corporation, who denounced the destruction as unauthorized and deeply offensive.
In May 2025, UNESCO opted not to advance Murujuga’s nomination for World Heritage status due to ongoing emissions damaging rock art and urged Australia to strengthen protective measures. UNESCO recommended eliminating harmful acidic emissions and called for a decommissioning and rehabilitation strategy surrounding the gas plant.
Following federal approval to extend operations until 2070, Ngarluma-Yindjibarndi woman Kaylene Daniel expressed profound sorrow, emphasizing her community’s preference for World Heritage recognition over further industrial development.
Environmental impact
In 2019, Woodside along with its Joint Venture partners—Chevron, Shell, BP, and Mimi—submitted plans to prolong the North West Shelf project, including the Karratha Gas Plant, by an additional 50 years. This extension has the potential to produce around 4.3 billion tonnes of carbon emissions, with only about 8% contributing toward Australia's net-zero goal by 2050.
During 2020–21, the North West Shelf gas project was identified as Australia’s largest industrial source of emissions. In June 2022, Western Australia’s Environmental Protection Authority recommended extending operations until 2070 on condition of continuous emission reductions. This evaluation did not consider scope 3 emissions resulting from overseas gas combustion, which could amount to roughly 80.19 million tonnes of carbon annually.
By 2023, Woodside had become Australia's second-largest fossil fuel emitter after Chevron, releasing 47.5 million tonnes of CO2 since 2016. The Clean Energy Regulator ranked Woodside seventh among greenhouse gas emitters during the 2023 financial year.
After six years of regulatory processes, in December 2024 Western Australia authorized extending the project through to 2070. The Commonwealth government deferred its endorsement pending the federal election in 2025. On 28 May 2025, despite UNESCO’s refusal to grant World Heritage status due to emissions-related harm to rock art sites, Federal Environment Minister Murray Watt approved an additional 45 years of plant operations. This decision was met with strong resistance from Traditional Owners and environmental advocates.
Minister Watt highlighted that under the Environment Protection Biodiversity Conservation Act (EPBC Act), climate change impacts are not valid grounds for rejecting development applications. Critics warned that this approval could result in up to six billion tonnes of greenhouse gases being emitted—primarily overseas where the gas is consumed. Australian Greens leader Larissa Waters argued that this move jeopardizes any realistic prospect of achieving net-zero emissions by 2050. In 2025, this gas plant ranked as Australia's third-largest emitter.
Although the EPBC Act permits vetoes for projects affecting nationally significant environmental values, it currently excludes considerations related to climate change. Efforts to amend this legislation to incorporate a climate trigger have been ongoing since at least 2005 when then-Shadow Environment Minister Albanese proposed such reforms.
See also
Further reading
- Trunkline: the publication for Woodside employees. Perth, W.A. Issued for Woodside group personnel by the Government and Public Affairs Division. Vol. 1, no. 1 (Feb. 1992)–