EnergyAustralia keeps its Narrabri cards close to chest
EnergyAustralia, owner of a 20 per cent stake in Santos’s Narrabri gas project, has backed the gas producer’s efforts to open up a new supply source for NSW.
EnergyAustralia, owner of a 20 per cent stake in Santos’s Narrabri gas project, has backed the gas producer’s efforts to open up a new supply source for NSW but would not confirm if it would retain its holding over the long-term.
The Independent Planning Commission is undertaking a final assessment of the development including a major public hearing last week after the $3.6bn facility received sign-off from the NSW government in June.
EnergyAustralia’s stake dates back to 2012 but Macquarie has argued Santos may realign the partnership if it wins planning approvals given the exploration and production focus may be misaligned with the power retailer’s strategy.
“We’ve had the 20 per cent equity in Narrabri for a number of years and we are not going to speculate on what we may or may not do with our assets,” EnergyAustralia’s Liz Westcott told The Australian.
“We definitely keep a thought around what equity we will hold in assets.”
EnergyAustralia has already struck a five-year, $500m supply deal with a rival development, the Andrew Forrest-backed Port Kembla LNG terminal, which will compete with Narrabri.
However, the power giant said it supported the Narrabri project even amid strong community opposition. “We’re broadly supportive of what Santos is doing in terms of bringing domestic gas to NSW and we’re aware of the status of what the project is and the IPC process that’s underway,” Ms Westcott said.
“We’re watching and understanding where the community is and understanding where the IPC process is and staying up with that. ”
The IPC will hold two meetings on Tuesday with NSW planning, environment and water experts after a public hearing raised concerns over “knowledge gaps” in modelling.
Lock The Gate Alliance, which is opposed to Narrabri, said the meetings with experts should have been conducted as part of public hearings.