Narrabri gas project to support manufacturing jobs in northwest NSW
More than 1100 construction jobs would be created in the region of Narrabri if Santos’ gas project gets the green light this year — giving the town in north western NSW an economic boost.
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More than 1100 construction jobs would be created in Narrabri if the Santos gas project gets the green light this year, granting the northwestern NSW town a welcome economic boost.
The Australian oil and gas producer has just signed a non-binding agreement to supply manufacturer Perdaman with 14.5 petajoules of natural gas per year over 20 years.
The gas would be used to power a proposed new ammonium nitrate plant near Narrabri, which could supply either explosives for the mining industry or fertiliser for agribusiness, which are both crucial to the NSW economy.
Perdaman’s proposed plant would support about 700 jobs during the construction phase plus another 100 direct and 100 indirect jobs during operations.
Meanwhile, the Narrabri gas project will create 400 jobs during construction and support 25 ongoing jobs to operate the infrastructure.
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But the manufacturing plant would only be built if Santos’ $3.6 billion Narrabri gas project, which includes drilling up to 850 gas wells on 425 sites around The Pilliga forest, is approved by the NSW government.
State government approval has been delayed amid opposition from environmental groups, some local farmers and changing regulations for coal seam gas mining.
A decision by the Independent Planning Commission is expected later this year.
The state currently imports about 96 per cent of its gas from other states, which has increased the cost of gas to businesses and consumers.
Santos chief executive Kevin Gallagher said gas sourced from the Narrabri project would be “very competitively-priced” and solely for the east coast domestic gas market.
“The Narrabri gas project could produce enough gas to supply up to half NSW’s needs,” Mr Gallagher said.
“Keeping the cost of supply down is a very good way to keep gas prices down.
“Santos will bring to Narrabri our experience in Queensland where we have reduced connected well costs by a massive 84 per cent since 2015.”
Originally published as Narrabri gas project to support manufacturing jobs in northwest NSW
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