Santos has achieved an approvals milestone with the Narrabri gas project being referred to the Independent Planning Commission (IPC) in New South Wales.
The NSW Department of Planning will now complete its assessment report on the project and provide it to the IPC for consideration.
NSW Minister for Planning, Rob Stokes, has requested the IPC make a decision on the Narrabri project within 12 weeks of receiving the report.
Santos managing director and chief executive Kevin Gallagher said a decision on whether or not Narrabri could proceed was vital for the company to determine where it would invest in new natural gas developments to supply the east coast gas market over the coming decade.
Narrabri has the potential to supply enough natural gas to meet up to half of demand in NSW, according to Santos, which has committed 100 per cent of production from the project to the domestic market.
“We have applied the best science to the environmental impact statement for Narrabri,” Stokes said.
“We are confident that it will stand on its merits and that the project could be safely and sustainably developed to protect water resources and the environment. Santos will participate openly and transparently in the IPC process.”
Gallagher said if Santos developed Narrabri, it would be the most competitively-priced gas for NSW customers, and would be cheaper than LNG imports.
“Ours is a cyclical business and we must not lose sight of the fact that the current low price and market conditions are not permanent,” he said.
“Demand, and with it, prices, will ultimately recover, and therefore, we must continue to focus on how and when we need to develop future gas sources at the lowest possible cost of supply to increase competition.”
If developed, Narrabri would supply NSW homes, small businesses, major industries and electricity generators.
The gas would be made available via a pipeline linking into the existing Moomba to Sydney pipeline. The proposed pipeline would be constructed and owned by APA Group.