$1 billion spend on gas project across five years

Santos managing director and chief executive officer Kevin Gallagher told guests at the Mayor’s Christmas Party in Narrabri on Friday night that Santos proposed the expenditure of more than one billion dollars on the Narrabri gas project over the next five years.

Mr Gallagher had earlier made the announcement at the Santos annual Investor Day in Sydney last week.

“At the investor day I was able to announce for the first time our plans for the Narrabri gas project,” Mr Gallagher said.

“We have already commenced workover activities on our existing wells in October,” he told guests.

“And during the appraisal phase of the project that will start early in the new year, there will be plenty of opportunities for local businesses as we invest around $120 million over the next two years – a great boost for local suppliers, local trades and local jobs.

“In the first half of 2023, we will look to take a final investment decision on the first phase of development – an investment of another $900 million over the following three years,” Mr Gallagher said.

“Last week, the federal Environment Minister also signed off on the project so we’re now very much looking forward to getting on with business – that’s drilling ten appraisal wells and core holes, doing some seismic, expanding our groundwater monitoring network and meeting our other environmental commitments.

“For me, with the recent approvals and your support, I know that Santos has a growing and very bright future here – and, importantly, we will be building a better future for the people of Narrabri as well,” Mr Gallagher said. “A future that means local jobs and local business opportunities.

“We already employ 18 people who live and work locally – and one of the things I am passionate about is that all our operations people will live and work locally throughout the project – they will not be FIFO workers.”

“We want to provide jobs that mean local kids from Narrabri don’t have to move to the city or interstate – away from their families – to find good career opportunities,” Mr Gallagher said.

“And I am very pleased that Santos has entered into a $14.5 million Voluntary Planning Agreement with the Narrabri Shire Council which will deliver an upgraded Narrabri Airport, better local roads, more development of the sports and tourism precinct and improvements for the Country Universities Centre.

“Last week we announced a $50,000 contribution to our partnership with the Country Universities – a great institution which gives local students the chance to do their tertiary education in their own community – and they might even be our employees of the future.

“There will be many more community initiatives to come – with some very exciting news in the coming weeks,” he said.

“It was exciting to hear last week that Narrabri could be one of the state’s ‘Special Activation Precincts’ and it was great to have the Deputy Premier visit the Wilga Park Power Station on the day of the announcement – I met with him just yesterday and he is certainly a great supporter of Narrabri and a great supporter of Santos.

“Santos will work with the council to encourage new gas-using industries to locate in Narrabri and support development of such a precinct and the Northern NSW Inland Port,” Mr Gallagher said.

“Just last week, Santos hosted a business and contractor forum in Narrabri to make sure that local suppliers benefit from our investment – and I have heard it was a great success.

“The team here will continue to work closely with local businesses and contractors as we move forward next year.

“I am also very pleased to announce that we have also extended Santos’ apprentice and trainee program to include Narrabri, as well as our other operations areas such as Roma and Gladstone in Queensland.

“As I’ve said many times, Narrabri gas will be the most competitive gas in the market for NSW customers.

“We are going to do the right thing, we want to be a real part of the community here and we will honour all the commitments we have made.”