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Santos signs additional Narrabri deals

Speaking at the company’s Annual General Meeting this week, Santos CEO and General Manager Kevin Gallagher would not reveal who the customers were, but said deals had been made, following the company’s February agreement to supply gas from the project to fertiliser company Perdaman.

“Let me be clear – we have committed 100 per cent of Narrabri gas to the domestic market – gas that will be very competitively-priced because we will bring to Narrabri our safe, low cost operating model that we have successfully implemented in Queensland,” he said.

“This week we signed two further non-binding agreements with New South Wales customers for Narrabri gas, which will always be cheaper than gas imported from other states or from overseas.”

One of the largest known undeveloped gas resources in Australia’s southeast, the Narrabri project is subject to a decision from the NSW Independent Planning Commission and opposition to onshore exploration in the southern states has led to uncertainty over the development’s future.

Mr Gallagher said the CSG project had enormous potential.

“The Narrabri Gas Project could supply up to half NSW gas needs and underpin nearly 300,000 existing jobs in NSW that rely on natural gas,” he said.

Santos has spent more than $500 million on the Narrabri Gas Project since acquiring Eastern Star in 2011; we’ve applied the best science to our environmental impact assessment; we have a proven record of developing CSG resources safely and without harm to the environment or water resources; and a decision on the project is now a matter for the NSW Independent Planning Commission.”

If it goes ahead, the project is expected to cost approximately $3.6 billion.

For more information visit the Santos website.

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