But the decision has prompted controversy, as the area in which Woodside plans to build a coastal storage and wharf facility and inland gas plant is also home to a collection of ancient Aboriginal rock art.

In its report, the EPA deemed that environmental impacts could be contained, but “the proposal will result in the permanent loss of native vegetation, fauna habitat and some indigenous heritage sites”.

While the National Heritage Trust and the Australian Greens Party have signalled they will appeal the decision, Federal Environment and Heritage Minister Ian Campbell says he supports the development.

“My strong view is that the heritage values can co-exist with the expansion of the very important economic and environmental activity that companies like Woodside are proposing there,” Campbell told ABC Radio.

“We’ve got to remember that when you export natural gas from the Burrup, you are reducing greenhouse gas emissions by roughly 50-60%. There are huge economic and environmental benefits from the Burrup that need to be weighed against the important heritage values.”

Campbell has received a report from the Australian National Heritage Council over the possible heritage listing of the site.

Two months ago, Woodside warned that the $5 billion Pluto project could be in jeopardy if the area was heritage listed, while Premier Alan Carpenter yesterday reiterated his view that this move would have severe economic consequences for the nation.

The EPA’s report is subject to appeal until close of business on Monday September 18.