The energy giant's North West Shelf project, which hosts Australia's biggest gas export plant, was last week given approval by the Albanese government to keep operating until 2070.
The safeguard mechanism is a policy designed to limit emissions at Australia's largest industrial facilities in line with the nation's climate targets of 43 per cent below 2005 levels by 2030 and net-zero by 2050.
Asked if Woodside had to get the project down to net-zero emissions, Energy Minister Chris Bowen replied "yes".
"This will be legally obliged and required under our safeguard mechanism to meet net-zero by 2050," he told ABC's Insiders on Sunday.
"In effect, all the facilities covered, the more than 200 facilities covered by the safeguard mechanism are obliged to have a pathway to net-zero."
Asked if approving gas projects would make it harder for Australia to win a global climate summit it is bidding to co-host with Pacific Island nations next year, Mr Bowen said these decisions would always be controversial.
"I don't deny that, but we'll always set Australia's domestic policy in Australia's domestic best interest," he said.
"There's a great opportunity for our country, (it) restores Australia's leadership in climate against the bad years of the decade of denial and delay, (and) shows we're back in a very meaningful way".
Turkey is also bidding for the climate talks, with the energy minister hopeful the issue is resolved soon.
Mr Bowen said Australia remains on track to reduce emissions by 43 per cent by 2030, despite a small increase in emissions last year.
He also ruled out a retrospective domestic gas reservation policy to existing fields.
During the federal election campaign, the coalition promised to redirect gas to domestic users.
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