Santos says it won’t ‘exert any effort’ on Narrabri gas project while it focuses on Beetaloo Basin | Santos
Santos CEO Kevin Gallagher told an investor briefing that the company “will not be making any efforts” for the Narrabri gas project while it awaits outstanding approvals, raising fresh questions about the future of the controversial development.
Gallagher told investors this week that the company is prioritizing exploration in the Beetaloo Basin in the Northern Territory, where it is looking to expand.
He said a strategic review had determined that Santos reserves in eastern Queensland and Western Australia’s Eye Basin needed to be “de-prioritised”.
according to published briefingThe Narrabri project in northwestern New South Wales will undergo “further review” in 2027 after the company completes an assessment of the Beetaloo reserves.
“Narrabri, it’s really just about focusing on approvals and… you know, continue with that, but still don’t spend any capital or put any effort down the road,” Gallagher told investors.
“And some of these [domestic] After valuing Beetaloo the assets will be revalued and the reasons for this are obvious.
“If Beetaloo works, then it changes the things we might want to do with some of these entities. In some cases, we’re less likely to have to do anything with any of them… because Beetaloo has scale.”
Gallagher told investors that the company “believes there is enough gas on its land in the Beetaloo Basin to supply 10 million tonnes of LNG and supply the east coast market for more than 50 years”; This is an extraordinary resource.
These remarks created further uncertainty for opponents of the Narrabri project. Although the main approvals of the project were received in 2020, other elements such as production license, pipeline license and subsidiary pipeline development approval attract attention. The branch pipeline will connect to a larger Hunter gas pipeline, which has faced strong opposition from landowners in the area. The gas field is also subject to legal challenge from Gomeroi traditional owners under local law.
Georgina Woods, head of research and investigations at grassroots anti-mining organization Lock the Gate, said: “By holding Narrabri but delaying it, Santos is prolonging stress and suffering for communities who have spent more than a decade defending farmland, water and cultural heritage against this devastating proposal.”
“Stop stalling everyone and finally expedite the project,” Woods said.
“It has no value to them, but it means a lot to the community – that forest and that groundwater.”
During questioning in the NSW parliament this week, independent MP Roy Butler asked Premier Chris Minns about the Santos briefing, which Butler described as “another delay to the Narrabri gas project”. Minns has been a vocal supporter of the development, threatening last year to compulsorily buy land to pave the way for the Hunter gas pipeline.
Butler said: “Will the government accept that the Narrabri gas fields are smaller and higher in carbon dioxide than expected, which not only contravenes the government’s climate change policies but also makes the gas more expensive to produce?”
“This is not necessarily inconsistent with our energy needs in New South Wales,” Minns responded.
The premier said about 5 per cent of the state’s total energy capacity would be needed from “peaking power plants”, which generally operate only when there is a surge in demand for electricity.
“We will also need gas for our manufacturing industry and it has to come from somewhere,” he said.
“This is entirely consistent with the government’s ambitions for net zero and its major commitments to renewable energy investment in this state.”
In response to questions, Minns’ office pointed to Guardian Australia his response to Butler, which did not directly address the investor briefing or delays to the project.
A Santos spokesman said the company was still seeking approval for Narrabri.
“A final investment decision cannot be made until all necessary approvals, including native title, gas production and pipeline licences, have been received,” the spokesman said.
