ASX-listed Woodside Energy has welcomed the Australian federal government's proposed decision to grant environmental approval for the extension of the North West Shelf (NWS) project, saying it will provide certainty for the future of the long-running gas operation.

Woodside executive VP and COO Australia Liz Westcott said the proposed approval followed "rigorous assessments and appeals" and would help maintain jobs and energy supply.

“This proposed approval will secure the ongoing operation of the NWS and the thousands of direct and indirect jobs that it supports,” she said.

“This nationally significant infrastructure has supplied reliable and affordable energy to Western Australia for 40 years and international customers for 35 years and will be able to continue its contribution to energy security.

“Since starting operations in 1984, the NWS project has paid over A$40-billion in royalties and taxes, and supported regional development opportunities in the Pilbara.”

The company said it had received the proposed federal conditions, which related to issues including cultural heritage management and air quality, and was reviewing them to understand their application.

“We remain committed to protecting the Murujuga Cultural Landscape and support its World Heritage nomination. We believe long-term co-existence between cultural heritage and industry is possible when guided by credible science, Traditional Custodian leadership, and genuine collaboration,” said the company.

As part of the Western Australian government's approval in December, the NWS JV committed to environmental measures including a significant reduction in air emissions and actions to manage and reduce greenhouse-gas emissions over time.

Consultation with Traditional Owners is taking place as part of these conditions, including compliance with air quality objectives from the Murujuga Rock Art monitoring programme.

The NWS project has delivered more than 6 000 PJ of domestic gas over its life – enough to power homes in a city the size of Perth for about 175 years, if used solely for household electricity.

Over four decades, the project has paid more than A$40-billion in royalties and excise, provided employment and contracting opportunities across the Pilbara and broader Western Australia region, and invested over A$300-million in social and community infrastructure in the city of Karratha.