Gas decision sought in 12 weeks

Santos has welcomed the referral of the Narrabri Gas Project to the Independent Planning Commission for determination.

“This is a key milestone in the independent approvals process,” Santos said in a statement.

“The next step is for the NSW Department of Planning to complete its assessment report and provide the report to the IPC for its consideration.”

The NSW Minister for Planning Mr Rob Stokes has requested that the IPC hold public hearings and make a determination regarding the Narrabri Gas Project within 12 weeks of receiving the Department’s assessment report.

Santos Managing Director and Chief Executive Officer Kevin Gallagher welcomed the referral, noting that a decision on whether or not Narrabri can proceed is vital for Santos to determine where it will invest in new natural gas developments to supply the east coast gas market over the coming decade.

Santos is seeking approval to develop the Narrabri Gas Project, which Santos has said has the potential to supply enough natural gas to meet up to half of NSW’ natural gas demand.

Santos has committed 100 per cent of Narrabri gas to the domestic market, the company said.

“We have applied the best science to the environmental impact statement for Narrabri,” Mr Gallagher said.

“We are confident that it will stand on its merits and that the project could be safely and sustainably developed.

“Santos will participate openly and transparently in the IPC process.”

NSW imports more than 95 per cent of its gas from other states and as a result, NSW businesses are at a cost disadvantage compared to their peers in other states, Santos said.

“If we can develop Narrabri gas, it will be the most competitively-priced gas for NSW customers, and it will always be cheaper than LNG imports, especially when gas prices are high in Asia,” Mr Gallagher said.

“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.

“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.”