Oz Santos Inks More Narrabri Gas Deals
Santos has signed non-binding memoranda of understanding with two companies for the supply of natural gas from the proposed Narrabri gas project in New South Wales (NSW), it said May 10.
Under the proposed transactions, Santos would supply Brickworks, manufacturer of building products, with up to 3 petajoules/year of natural gas from Narrabri for seven years from 2025 and Weston Energy, gas retailer and trade, with 10 petajoules/year for 10 years, starting no earlier than 2023, Santos said May 9.
The supply of Narrabri gas is subject to a final investment decision, negotiation and execution of a definitive gas supply agreement and approvals by each party. The Narrabri coalbed methane (CBM) project is being assessed by the NSW Department of Planning ahead of a decision by the Independent Planning Commission.
Santos also has a non-binding Narrabri gas supply agreement in place with Perdaman for a proposed new fertiliser plant at Narrabri, creating a new local industry.
“We have committed 100% of Narrabri gas to the domestic market, enough to supply up to half of NSW’s needs and help support about 300,000 jobs in NSW that rely on natural gas,” Santos CEO Kevin Gallagher. Earlier this year, NSW Labor said it will not let the project to go ahead if the party wins the upcoming elections.