Santos, New South Wales Sign MoU For Gas Supplies from Narrabri Gas Project

Santos and the NSW Government have reached an in principle agreement aimed at securing affordable natural gas supply from the Narrabri Gas Project (NGP) to meet a predicted supply shortfall in NSW post-2015.

NSW Deputy Premier, Andrew Stoner and Santos Vice-President, James Baulderstone signed a Memorandum of Understanding (MOU), which recognises the NGP as a "Strategic Energy Project" given its potential importance to New South Wales’ future energy security requirements, Santos said in a statement Friday.

The MOU aims to ensure the assessment of the NGP is progressed in a timely manner and that Santos meets industry best practice in relation to key environmental safeguards.

“There is no doubt that bringing on more gas supply will put downward pressure on domestic gas prices. With the potential to supply up to half of the State’s natural gas needs, this project will bring on gas supply at a time when New South Wales homes and businesses need this essential product. Having the Government recognise the importance of this project and the benefits it will deliver to the State is critical to its long term success,” Baulderstone said.

While there will be no change to either the existing approvals process or New South Wales' stringent regulatory conditions, the MOU helps to ensure that the NGP will be assessed within timeframes that would enable gas to be delivered when it is most needed, he added.

The NGP will also involve the construction of a pipeline to directly connect the Narrabri gas resources into the NSW domestic market, the company said.

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