Last week’s Labor-Greens deal requiring new gas projects to be net zero plus a raft of regulatory interventions will make it harder for Woodside to pipe gas from the Timor Sea to Darwin and bolsters Dili’s case to host the potential mega project, say analysts.

As Climate Change and Energy Minister Chris Bowen won support on Monday from major manufacturers for settling concerns about last week’s heavy industrial and resources emissions legislation, further signs have emerged about the safeguard mechanism’s impact on fossil fuel projects after Greens negotiated a limit on gas emissions.