The Chamber of Minerals and Energy WA (CME) notes with disappointment the Federal Government's decision to delay a ruling on environmental approval for the North West Shelf Project Extension until at least March 31.
CME Chief Executive Officer Rebecca Tomkinson said the deferral was the latest setback for a project that has already spent six years undergoing environmental assessment.
"Rigorous assessment processes are important to uphold Australia's world-leading environmental standards but the North West Shelf Project Extension has now been waiting an unacceptable six years," Ms Tomkinson said.
"Delays like this do nothing to improve environmental outcomes - but they do significant damage to our ability to attract international investment."
The North West Shelf Project Extension received environmental approval from the WA Government in December following a lengthy and robust assessment.
"The latest delay at a Federal level illustrates once again how duplicative processes act as a handbrake on much-needed development," Ms Tomkinson said.
"In a context of declining productivity and rising costs, late-stage project delays fly in the face of the certainty businesses are crying out for.
"Major project investment decisions take many years and involve significant upfront risk. The ability to provide process and timeline certainty can be the difference between that capital being deployed here in WA or heading overseas."
Ms Tomkinson said WA was forecast to face a gas deficit from the end of the decade, with the situation even worse on the east coast.
"Ensuring we have an affordable, low emission and reliable supply of energy - which the North West Shelf Project Extension will enable - is vital to securing Australia's economic prosperity," Ms Tomkinson said.
"Not only is gas critical to firm up renewables in low-emission electricity grids, it is also a key industrial feedstock. That includes for the refining of critical minerals required for everything from wind turbines to submarines."
