Santos acquires Hunter Gas Pipeline

Santos has acquired Hunter Gas Pipeline Pte which owns an approved underground gas pipeline route from Wallumbilla in Queensland to Newcastle in New South Wales (NSW), it said on August 11.

“The underground pipeline route passes close to Santos' Narrabri gas project and our goal is to work with infrastructure developers and owners to construct the pipeline and deliver much-needed gas to east coast domestic markets in the shortest timeframe possible,” the company said, adding the pipeline will also be designed to transport hydrogen as customer demand evolves during the energy transition.

Santos' midstream and clean fuels president Brett Woods said the acquisition provides a pathway for the delivery of gas from the Narrabri project to the domestic market, subject to a short connection to the main pipeline, which is currently in the planning phase.

"At a time when the ACCC is forecasting domestic gas shortfalls, our Narrabri project, which is 100% committed to the domestic market, will inject new supply into southern domestic markets and put downward pressure on gas prices for New South Wales businesses, manufacturers and families," Woods said.

"Acquiring the Hunter Gas Pipeline route is an important step for the Narrabri project, with appraisal drilling planned later this year, pending various native title and environmental management plan approvals,” he added.

Once fully operational, Narrabri has the potential to deliver more than half NSW's gas demand, Santos said.

The Hunter Gas Pipeline already has planning approval and, once constructed, will potentially connect the Wallumbilla Gas Supply Hub in Queensland to NSW, providing a second route to southern markets for Queensland gas and adding competition to the domestic market.

Subject to receiving remaining government approvals, construction of the pipeline is expected to start in early 2024.