Santos' Narrabri Project Goes to Planning Commission
Santos March 12 announced that New South Wales (NSW) minister for planning has referred the Narrabri gas project to the Independent Planning Commission (IPC) for determination.
“This is a key milestone in the independent approvals process. 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 company said.
The minister 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 said.
Santos CEO Kevin Gallagher welcomed the referral, noting that a decision on whether or not the Narrabri coalbed methane project 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.
"We have applied the best science to the environmental impact statement for Narrabri. We are confident that it will stand on its merits and that the project could be safely and sustainably developed to protect water resources and the environment. Santos will participate openly and transparently in the IPC process," Gallagher said.
Santos said the Narrabri gas project has the potential to supply enough natural gas to meet up to half of NSW's natural gas demand. The company has committed 100% of Narrabri gas to the domestic market. The project, however, has been mired in controversy as many activists say it poses a risk to the local environment. Santos has always denied these claims.
"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. 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," Gallagher said.