The Federal Court has struck a blow to energy giant Woodside’s plans. 

Woodside's Scarborough gas development faces a setback as the Federal Court invalidates a portion of its environmental plan, preventing underwater surveying for the $12 billion project located off Western Australia's Pilbara coast. 

Legal action was taken after traditional owners raised concerns about the potential impact on marine life, including Indigenous songline-carrying whales.

Federal Court Judge Craig Colvin's ruling means Woodside must resubmit an environmental plan approved through adequate consultation with traditional owners before proceeding with testing.

The case revolved around Woodside's 1,200-page environmental plan, which outlined seismic testing involving powerful air blasts toward the ocean floor to locate gas reservoirs. While the plan was initially submitted in late 2021, it underwent revisions before regulator NOPSEMA accepted it in July 2023, imposing conditions that included further consultation with First Nations organisations.

The victory underscores the importance of Indigenous consultation in major projects, while industry leaders say it shows a need for clear regulations to ensure better consultation while maintaining regulatory certainty.

Woodside argued that any delay in testing would be disadvantageous and could push the timeline to 2025. They believed the testing's data could still prove valuable for future drilling campaigns and reservoir assessment.

The decision affects Woodside's path forward in developing the Scarborough project, which is expected to produce eight million tonnes of natural gas annually. 

The company will collaborate with NOPSEMA to create an approved environmental plan before resuming seismic testing.