Woodside Petroleum Ltd. has received federal approval to expand the Scarborough field in Australia, where reserves could help to expand natural gas exports.

The Australia-based producer said the Commonwealth-Western Australian Joint Authority granted permission to begin developing the field, estimated to hold 11.1 Tcf of natural gas.

The Scarborough field is about 230 miles offshore Western Australia. It is also a key part of Woodside’s strategy to build a second liquefied natural gas (LNG) train at the Pluto terminal.

CEO Meg O’Neill said the regulatory approvals were necessary before development began. The estimated $12 billion Scarborough and Pluto expansion projects were sanctioned last November.

Woodside is planning to construct a floating production unit in the...