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State approval for North West Shelf extension a key step to energy security

Australian Energy Producers welcomes the Western Australian Government providing environmental approval for the North West Shelf Project Extension.

“The North West Shelf project is critical to providing energy security and emissions reductions to the state and region – through long-term gas supply to Western Australian households and businesses and supporting WA’s key trading partners,” Australia Energy Producers WA Director Caroline Cherry said.

“The North West Shelf Project continues to be a truly nation-building project. For more than four decades, it has been a major contributor to Australia, providing more than $40 billion in royalties and excise alongside significant employment and business opportunities in the region.”

“The approval recognises the increasingly urgent need for new gas supply in Western Australia to ensure households and businesses continue to have reliable and affordable energy.”

“More gas will be needed to serve rising demand supporting renewables in electricity generation as coal is phased out while underpinning the economic benefits produced by the mining sector as a key power source.”

Ms Cherry said the state government approval now triggers recommencement of the Federal Government’s environmental approval process.

“The Federal Government must recognise the need to bring on more gas supply sooner, while providing certainty to a project that delivers wide-ranging benefits to Australia, Western Australia and regional trading partners,” Ms Cherry said.

A recent independent report by EnergyQuest found that without new gas investment, Western Australia would run out of gas for electricity – which accounts for 60 per cent of the state’s power – from the early-2030s and its mining and industrial sectors would be left without gas from mid-2030s.

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