Narrabri gas project: Santos accepts IPC conditions on $3.6 billion plan
The $3.6 billion gas field at Narrabri has been approved, and construction could begin in as little as 12 months. DO YOU AGREE WITH THE DECISION? HAVE YOUR SAY
NSW
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NSW’s economic output will get a gas-fired $12 billion boost as Santos’s major Narrabri project cleared a major hurdle on Wednesday.
The gas project will now need to secure federal environmental approval and construction could begin after a 12-18 month appraisal drilling period.
The state’s independent planning commission stared down fierce green opposition to the $3.6 billion project to give it the nod, with 134 conditions attached.
It follows a four-year wait for the planning approval.
NSW Treasurer Dominic Perrottet, asked about the estimated boost to the state’s economic output, said: “It is projects like Narrabri which will fire up the NSW economy and will put more people in jobs.
“This project will provide a secure, stable and reliable energy supply allowing us to continue to work on driving power prices lower, while also generating jobs.
“As we begin our economic recovery from COVID-19 we need to back job-creating projects in every corner of our state to help get people back on their feet to revive our economy.”
The project is pitched to supply half of the state’s gas needs, bring down energy prices, create 1300 jobs in peak construction, 200 jobs during operations and 500 direct and indirect jobs.
On top of the $3.6 billion direct capital investment, the IPC accepted estimates that the project would inject a further $5.5 billion in operating costs over the life of the project and boost NSW’s real economic output by $12 billion.
It will also generate $3 billion in direct revenue for the NSW government via royalties and taxes.
Santos on Wednesday said it accepted the conditions proposed by the IPC and welcomed the approval.
“Santos is excited about the prospect of developing the Narrabri Gas Project, a 100 per cent domestic gas project that can provide the lowest cost source of gas for NSW customers,” Santos chief Kevin Gallagher said.
“As the economy recovers from COVID-19, game-changing projects like the Narrabri Gas Project are critical to creating jobs, driving investment, turbo-charging regional development and delivering more competitive energy prices.
“Now all we want to do is get on with creating jobs in NSW and Narrabri.”
The project now requires approval of the Federal Environment minister.
The environmental impact assessment for the projects received a record 23,000 submissions — most of them objections.
Conditions set by the IPC for Santos to meet before it can progress through the development stage include further groundwater impact modelling, biodiversity offset conditions, minimised on site waste storage, bushfire safety mechanisms and the establishment of an Aboriginal Heritage Advisory Group.
Australian Workers Union National Secretary Daniel Walton welcomed the approval, saying the project could provide cheaper gas for NSW, meaning cheaper electricity prices.
“NSW should be a thriving global heavy manufacturing hub, and that’s exactly what we can become if we better harness our gas wealth. This approval is an excellent step,” he said.
Premier Gladys Berejiklian said she was pleased to see the project get the go-ahead because it would allow the state to hold up its half of the bargain under an agreement signed with the Morrison government.
“I’m relieved because part of our strategy and MOU with the federal government was NSW having a certain amount of supply of gas, which would then allow the federal government to provide us funding for infrastructure and energy,” she said.
Murray Scott, who was forced by the drought to leave his father’s farm near Yarri Lake and find work as a diesel mechanic in Narrabri, believes the gas project will bring jobs and people to the town.
“She’s a bit of a game changer,” the 26-year-old said.
“I do hear of a lot of people moving away because there is no work in Narrabri — it might also widen the selection pool for some of my single mates.”
Real estate agent Rob Gilbert welcomed the decision as “great news — I am so far ahead of the band today I cannot hear the music.”
And he said his pleasure was visible on the faces of everyone in town. “You couldn’t wipe the smile off their faces with a piece of four by two.
“In a dying town like Narrabri you have got to get people back here. For every five that arrive it creates a job somewhere and that’s why this is good news,” he said.
Cassie Dickinson, who owns an auto electrical business in the town with husband Clayton, said it was excellent news for NSW as well as the pair and their four children.
“This decision means my children are more likely to stay in Narrabri because of the flow-on opportunities that will open up for them.”