The developer of the Narrabri gas project, Santos, has announced the official ratification of a $14.5 million voluntary planning agreement with Narrabri Shire Council.

The agreement is the largest undertaken by council and will pave the way for the development of significant community projects.

Council has already received $2 million of the agreement to start stage one of the Narrabri Tourism and Cultural Precinct.

The VPA funds are earmarked to go towards the redevelopment of the Narrabri Airport terminal, works on the tourism and cultural precinct, Narrabri CBD master plan upgrades, Narrabri Library relocation, and Country Universities Centre expansion, pending the final investment decision on the gas project.

Speaking with The Courier about the VPA, Santos managing director and chief executive officer Kevin Gallagher said the company was excited about the benefits the agreement and subsequent projects would bring to the community.

“This is a great program that will lead to a lot of development in Narrabri and money … $14 million or so … to contribute to a various number of community projects,” Mr Gallagher said.

“As a company, part of our purpose is to invest in the communities we operate in and help develop those communities and create a better world for everyone.”

During Friday morning’s announcement by the Narrabri Creek, Mr Gallagher was shown plans for the tourism and cultural precinct development by Narrabri Shire mayor Ron Campbell.

“It’s great to see the projects and the vision that Ron and the council have in Narrabri,” Mr Gallagher said.

“Those community partnerships are really important to Santos.”

The announcement of the VPA’s ratification came as Santos – in partnership with council, Narrabri Rugby Club, the Queensland Reds and NSW Waratahs – welcomed thousands of people at the Santos Festival of Rugby at Dangar Park.

Mr Gallagher said 2500 people were expected to attend Friday’s festivities, followed by an estimated crowd of 4000 on Saturday.

“We’re just proud to invest and support activities like this that bring life to communities and bring significant investment to local communities and local businesses,” Mr Gallagher told The Courier.

“All of that is because we’re very excited to be here and we look forward to the vision of our gas project being developed in the years ahead and continuing to build the frameworks and programs and support for development of the Narrabri community and the region more generally.

“Narrabri is an exciting place to be at the moment.”

Cr Campbell welcomed Santos’ commitment to the community and said the funds for the riverside precinct would enable a project that will be beneficial for generations to come.

“It’s very exciting for the community,” Cr Campbell said.

“We’ve got the plans on display in The Crossing Theatre car park for anyone to see.

“The $14.5 million VPA is a wonderful injection into our community and will provide funding for projects that will capitalise on the shire’s future growth, benefiting generations to come.

“We are here for the Festival of Rugby. It was a major success in 2021 and injected a huge amount of money into our community.

“Santos, as always, committed to engaging local contractors and local content as they did in 2021.

“What the Festival of Rugby has done for the Narrabri Shire, it has given us an opportunity as a shire to develop that rugby ground.

“We have plans to develop that into a sporting precinct.

“We hope to have other events that will again inject money back into the community. That’s a direct result of the Festival of Rugby.

Speaking of the company’s role in the Australian energy market, Mr Gallagher said Santos has been one of Australia’s leading gas suppliers for many decades.

“We’re very proud of our role in bringing gas to the east coast of Australia,” he said.

“We believe that the demand for gas on the east coast is huge and we have dedicated all of the gas of the Narrabri project to the domestic market.”

Speaking of the gas shortage being experienced in Australia, Mr Gallagher said there is nothing that will address that shortage like the company’s Narrabri project.

“It will be great for Narrabri and for regional NSW, attracting new businesses to the region,” he said.

“One of the things that I really get quite excited about when I talk to a lot of the local businesses here, and community stakeholders, we talk about the importance of bringing that investment to Narrabri because they want a future for their kids.

“They can stay in the community and have a career and a life without having to leaving home.

“I’m very optimistic that will happen.

“The stars are aligning around the project.”

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