The government attached more than 70 conditions to the approval.

"While I have considered the social and economic implications of this project, my focus has been on protecting environmental matters of national significance through strict conditions to manage any potential environmental impacts," Environment Minister Tony Burke said in a statement.

Chevron had been seeking federal environmental approval for a 25 million tonne per annum (mtpa) LNG plant as well as a domestic gas plant. The first phase of the Wheatstone project will have an initial capacity of 8.9 million tonnes per annum of LNG and a domestic gas plant.