PERTH, April 3, 2026, 04:13 AWST
Woodside Energy has brought its North West Shelf LNG and domestic gas output back online in Western Australia, following a shutdown caused by Severe Cyclone Narelle late last week. According to the company’s April 1 update, a “controlled return to normal operations” is in progress. 1
The North West Shelf, Australia’s oldest and second-biggest LNG project with 14.3 million tonnes a year in capacity, is coming back online just as energy markets remain jittery—conflict in the Middle East and storm disruptions in Australia aren’t helping. Brent crude finished Thursday at $109.03 a barrel, marking a 7.78% jump. 2
Canberra has an eye on domestic supply too. On Thursday, the government signaled it might activate the Australian Domestic Gas Security Mechanism (ADGSM), a move that would compel exporters to give local buyers first dibs on uncontracted gas. The warning follows concerns that east-coast wholesale gas could get tighter during winter. 3
Woodside reported that both Macedon and Pluto continued delivering gas to Western Australia during the disruption, cushioning some of the impact at home. Upstream, though, the rebound remains uneven. Mitsui’s Australian arm, which runs the Waitsia gas plant with Beach Energy, said this week it’s still in the process of getting its full crew back on site. Waitsia sends gas to North West Shelf. 2
Saul Kavonic at MST Marquee put the hit to Australian LNG at over 30 million tonnes a year as the cyclone swept through. If the facilities stay offline for more than a few days, he warned, “they would exacerbate gas market tightness in Asia and Europe.” 2
Woodside’s restart comes into sharp relief as Chevron continues to grapple with the fallout at its Wheatstone LNG plant, where both trains remain shut after what the company called extensive cyclone damage. At a Sydney conference this week, Chevron said it could be several weeks before output returns to normal at the 8.9 million-tonne-a-year facility. 4
This restart throws an early spotlight on Liz Westcott, who only stepped into the CEO role at Australia’s top oil and gas producer last month after a stint as acting chief. Back then, Westcott called 2026 a “big year of delivery” for Woodside, with Scarborough, Louisiana LNG and Browse all on deck. 5
Browse is still up in the air. On Monday, Woodside pulled its environmental referral for the Browse carbon capture and storage (CCS) project, saying it plans to file again under new national rules. CCS involves capturing CO2 and putting it underground; in this case, Browse is supposed to supply gas to North West Shelf, which picked up a life extension to 2070 last year. 6
Woodside is juggling higher prices and a major facility back in action, yet faces a growing stack of policy and project risks. Resources Minister Madeleine King warned that “Australians will be a priority for energy supplies” should disruption escalate. Adding to the pressure, J.P. Morgan on Thursday flagged the possibility of oil hitting $150 a barrel if Strait of Hormuz flows remain blocked through mid-May. 3
The immediate focus is on North West Shelf’s output: stability hinges on how soon connected operations like Waitsia can get back to speed, and if Western Australia’s broader LNG infrastructure bounces back sooner than Chevron’s cyclone-damaged properties. 7
