The Albanese government could be forced to overhaul the laws governing offshore energy projects after a court ruling slowed the approval of new gas developments, and raised doubts about how quickly wind farms, considered vital to the energy transition, can be built off the Australian coast.

The decision to uphold a landmark win in September by Tiwi Island senior lawman Dennis Tipakalippa against the regulatory approval given to Santos’ $5.3 billion Barossa gas project in the Timor Sea has crystallised fears inside the government that the benchmark for new projects is becoming too high.