Santos buys Hunter Gas Pipeline to help kickstart Narrabri gas project
Aussie gas developer Santos has bought out the Hunter Gas Pipeline, shining some light on the hill for the Narrabri gas project after years of delays and green tape.
NSW
Don't miss out on the headlines from NSW. Followed categories will be added to My News.
Australian gas developer Santos has announced a landmark milestone in its bid to bring more gas into NSW by buying out the Hunter Gas Pipeline.
The pipeline from Wallumbilla in Queensland to Newcastle has already previously been approved and passes close to the Santos Narrabri gas project in the state’s central west.
The long-delayed Narrabri gas project will be on track to possibly supply more than half of NSW’s gas demand once it is up and running.
Santos informed the Australian Stock Exchange Thursday afternoon.
Construction is expected to begin on the pipeline in early 2024, subject to government approvals.
Company spokesman Brett Woods said the pipeline would help bring the Narrabri gas to the domestic market via a short connection to the main pipeline.
It comes as Federal and State Energy Ministers meet on Friday over the escalating energy crisis and shortfalls in gas.
It’s the first meeting since the electricity market was suspended in June amid chaos over blackout warnings.
The giant gas pipeline - which will go underground - will be a boon for families, small businesses and manufacturers in regional towns in the Hunter Region, the company says, as they will have the opportunity to obtain gas supplies from the pipeline.
“At a time when the ACCC is forecasting domestic gas shortfalls, our Narrabri project, which is 100 per cent committed to the domestic market, will inject new supply into southern domestic markets and put downward pressure on gas prices for NSW businesses, manufacturers and families,” Mr Woods said.
“It will make more gas available to cover peak demand periods, especially in circumstances where gas power generators are called on unexpectedly to replace wind, solar and coal outages, as we have seen this winter.”
The company plans to do appraisal drilling later this year, pending native title and environmental management plan approvals.
The Hunter Gas Pipeline was planned to connect the Wallumbilla Gas Supply Hub in Queensland to Newcastle in NSW and would provide a second route to southern markets for Queensland gas. It would also inject competition into the domestic market.
The company also says the pipeline will be vital to secure gas supply for southern states over time, with Queensland currently the main source of gas supply.
“The route of the underground pipeline was specifically chosen to ensure minimum impact on communities, landholders and the environment, but there is room to make further improvements as needed,” Mr Woods said.
“The cheapest gas supply will always be the gas on your doorstep because that reduces transport, storage and other handling costs.
“Subject to receiving remaining government approvals, construction of the pipeline is expected to commence in early 2024.”
The Narrabri gas project using coal seam gas has been dogged by delays and campaigns against it by activists.
Huge queues as monster blackout pushes Broken Hill to brink
Schools have been closed, mine workers stood down and the local hospital shifted to emergency mode as power starts to come back online in the outback city.
Elite college students in alleged ‘racial’ tiff at iconic Sydney venue
An investigation is underway at one of the University of Sydney’s prestigious residential colleges into an alleged after-party ‘incident’ with racial overtones at the Lansdowne Hotel that later saw police called to the venue.