Energy giant Shell was given the green light by the federal government to construct a floating liquefied natural gas (LNG) station off the northwest coast of Western Australia, which is poised to be as the world's first floating LNG project.

Federal Environment Minister Tony Burke said on late Thursday that Shell's planned Prelude facility in the Browse Basin would commence construction under the strict guidance of environmental conditions.

Mr Burke said that the federal approval for the project was both based on economic and environmental considerations but he clarified that while the practical benefits were duly assessed in certifying for the realisation of the Prelude facility, his focus "focus has been on protecting environmental matters."

Set to stand on Western Australia's seabed, Shell's Prelude facility would siphon out natural gas from the offshore gas field as Mr Burke gave assurance that his office's exhaustive study has determined that the floating facility would meet Australia's national environmental law.

He added that no risks were ever allowed to intrude on the environmental soundness of Prelude and strict conditions were imposed on the Shell undertaking to ascertain that the marine resources within the project site would be preserved and protected.

Shell was able to convince the federal authorities that the Prelude facility would only utilise technology that would insulate the environment from any harm, with corresponding contingency measures that would minimise the risks of environmental damages in the event of an oil spill and additional measures of necessary rehabilitation following the occurrence of an accidental oil spill.

Mr Burke said that the Shell Prelude gas station would only operate within commonwealth waters and would need sot submit further measures such as reduction of light pollution, management of noise effects and pests and wastes disposal system to his office's final approval.

Shell would have to open the facility's environmental performance report to the public, according to Mr Burke, and his office must be given access to the project at any given time for auditing and to ascertain that the facility is in compliance with all the approval conditions.