It was a party of mixed reactions when Woodside Petroleum announced on Friday morning it is no longer pursuing its planned $40 billion liquefied natural gas (LNG) project in the Kimberley region.

As expected, environmentalists hailed the monumental project plan reversal.

"Governments now need to support indigenous jobs through land management and economic activities that don't threaten the long-term protection of the unique Kimberley environment,'' Don Henry, Australian Conservation Foundation chief executive, was quoted by Perth Now, noting pursuing the industrial project would do massive damage to the region's unique coastline.

This triumphant joy, unfortunately, at the expense of the almost 10,000 jobs the project could have generated

"We will lose 8000 construction jobs and have them replaced with a few hundred operational jobs,'' Steve McCartney, Australian Manufacturing Workers' Union WA secretary, said.

"The biggest winners from this decision will be steel fabricators in South Korea and China, as local fabricators will not get a look in to build the facility.''

"We must not allow local jobs to float away,'' he said.

Woodside Petroleum cancelled the project based on the findings of a review that it would not deliver the expected returns to the company.

Lyndon Schneiders, Wilderness Society director, said the project reversal should warn both governments and businesses against forcing unwanted and unsustainable developments on communities.

"Australians have woken up to the threats that mining and industrialisation pose to our environment and our communities,'' he said.