Australia’s Gas Gamble: Woodside, WA, and the Long Shadow of the North West Shelf
In a decision that has drawn criticism from climate scientists and conservationists alike, the Australian government approved the extension of Woodside’s North West Shelf gas project until 2070 — well beyond most global net-zero targets.
The justification, at least in legal terms, is simple: under the current Environmental Protection and Biodiversity Conservation (EPBC) Act, the environment minister is not permitted to consider the climate impacts of a project when assessing it.
This is not an oversight — it’s a political design flaw. Although the Albanese government promised to reform the EPBC Act to allow for climate considerations, those reforms were quietly delayed until after the last federal election. Conveniently, so was the approval of Woodside’s application.
The North West Shelf is not a small domestic supply hub. Most of the gas extracted from this project is for export, primarily as liquefied natural gas (LNG) to Asian markets. Yet the federal government insists that gas remains crucial for Australia’s energy transition.
Prime Minister Anthony Albanese defended the project’s approval on pragmatic grounds. “In order to get that investment in renewables you do need firming capacity,” he said on the ABC, “whether it be batteries, hydro or gas… In Western Australia they are closing their last coal-fired power station at Collie in 2027. They are moving to renewables backed by gas.”
That’s a euphemism for gas-fired electricity.
Gas Power in Australia: A Snapshot by State
Gas currently plays a role in electricity generation across the country, but its scale, age, and purpose vary considerably by state.
New South Wales (NSW)
Gas generation in NSW includes the 667 MW Colongra Power Station and the aging Uranquinty Power Station (640 MW). These are large-scale peaking plants, designed to switch on quickly during high demand. While significant, they do not form the core of NSW’s baseload power.
Victoria
Victoria hosts several mid-sized plants, including the 1,450 MW Newport and Jeeralang stations. These are some of the oldest gas plants in Australia. Others, like Mortlake (566 MW), support the grid mainly during peak times.
Queensland
Gas plays a larger role here. The Swanbank E (385 MW) and Darling Downs (630 MW) power stations help supply consistent energy, while Braemar 1, 2, and 3 contribute significant peaking capacity. These are among the more modern gas assets in the country.
Western Australia (WA)
WA leans heavily on gas, with major plants like the 820 MW Kwinana Power Station and the 340 MW NewGen Kwinana. Smaller plants like Carnarvon or Port Hedland supply remote communities or industrial hubs. WA’s grid is separate from the National Electricity Market (NEM), and gas is a core part of its firming strategy as coal exits.
South Australia
SA transitioned away from coal earlier than other states and now uses gas for most of its firming needs. The Osborne and Pelican Point power stations (180 MW and 479 MW, respectively) are key contributors. SA’s heavy investment in wind and solar is balanced by gas to manage intermittency.
Tasmania
Hydro dominates here. Gas plays a minor role, primarily via the Tamar Valley Power Station (388 MW), but is rarely used.
Northern Territory
Gas is the backbone of NT’s generation, with most power plants in Darwin and Alice Springs being gas-fired. These are small but essential systems, often serving isolated grids.
Old Plants, Big Decisions
Many gas plants were built decades ago and are reaching the end of their economic life. Only a handful of new gas power stations are proposed or under construction. The focus is shifting toward battery storage and large-scale renewable projects — but approvals like Woodside’s suggest a policy gap, not just a technological one.
The Real Question
If the argument for gas is that it helps transition to renewables — why not invest directly in the renewables, storage, and grid upgrades needed to get there faster?
Why are we approving fossil fuel projects until 2070, while the world is racing toward 2050 net-zero?
Gas may be cleaner than coal, but it is still a fossil fuel. And unlike coal, it leaks methane — a far more potent greenhouse gas. The risk is that by doubling down on gas today, Australia locks itself into stranded assets tomorrow.
So instead of building a bridge to nowhere, perhaps it would have been wiser to build the road that leads straight to a renewable future.
Reference: List of natural gas power stations in Australia
