An appeal to overturn the approval of Santos’ Narrabri gas project was dismissed by the NSW Land and Environment Court on Monday morning.

Community action group, Mullaley Gas and Pipeline Accord, challenged the decision of the Independent Planning Commission in approving the development.

In his decision handed down on Monday, Chief Justice of the Court, Brian Preston said the group had not established any of the grounds of review of the IPC’s decision to grant development consent to the project.

Chief Justice Preston concluded that the summons should be dismissed.

In addition to the court’s dismissal of the case, Santos also has an opportunity to seek an order that the applicant, the Mullaley Gas and Pipeline Accord, pays its costs of the proceedings.

Should Santos wish to pursue this path, it would need to file and serve written submissions within two weeks of the date of judgement.

In response to the court’s decision, the company said it looks forward to getting on with its work to create jobs, drive investment and bring long term energy security to NSW at competitive prices.

Managing director and chief executive officer Kevin Gallagher said while the legal process had pushed the timelines for the project back 12 months, Santos was committed to bringing much-needed domestic gas to New South Wales.

“We are seeing play out in real time around the world what happens if you do not have domestic energy security,” Mr Gallagher said.

“On the east coast of Australia, regulators continue to warn about an increasingly tight market in the future.

“A shortage of supply means only one thing and that is higher prices for NSW households and businesses.

“If gas was currently being imported into NSW from the international spot market via an import terminal it would cost NSW customers more than five times the cost of gas from Narrabri.

“As I have said for many years, Narrabri gas will always be cheaper for NSW customers than gas imported from other states or overseas.”

Mr Gallagher said the decision now allows Santos to get on with the appraisal drilling phase of the Narrabri gas project.

The company anticipates its development would create 1300 construction jobs as well as 200 local, ongoing jobs.

Santos will also enter into a $14.5 million voluntary planning agreement with Narrabri Shire Council.

In relation to seeking legal costs from the other party, the Mullaley Gas and Pipeline Accord, Santos said it was reviewing its rights in relation to this matter.

The Environmental Defenders Office, which represented the Mullaley Gas and Pipeline Accord in court, said it was a very disappointing day for its clients.

“If the Narrabri gas project goes ahead, the impacts of its emissions on the global climate and the people and environment of NSW will be substantial,” the legal centre said in an online statement.

Lock the Gate Alliance said the judgement would only strengthen the resolve of the communities opposed to the project.

The organisation’s NSW spokesperson, Georgina Woods, said it may have been a legal loss, but it was not the end of the fight.

“This fight is not over by a long shot,” she said.

“Financial institutions around the world are increasingly unwilling to back polluting fossil fuel projects like what Santos proposes at Narrabri.”

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