Santos $3.6bn Narrabri gas project receives planning tick
The NSW Department of Planning has approved Santos’ controversial $3.6bn Narrabri coal seam gas project after a drawn out three-year process.
The fate of Santos’ controversial $3.6bn Narrabri coal seam gas project rests with the Independent Planning Commission after the NSW Department of Planning approved the proposal after a drawn out three-year process
The Narrabri project, which could supply half the state’s gas needs, has been recommended despite significant community concerns over the long-term effect on water supplies and contamination of agricultural land.
Narrabri would help ease a forecast 2024 gas shortfall for domestic users on the east coast and lower gas prices while also supporting the development of gas-fired power stations in NSW to help move away from coal-fired power plants, the Department of Planning concluded.
Conditions include not carrying out development in sensitive areas such as the Brigalow Nature Reserve, only developing gas wells on privately-owned land with agreement of the landowner and avoiding heritage items and threatened species “to the greatest extent practicable”.
The final hurdle for Narrabri requires sign-off from the Independent Planning Commission, with the body having 12 weeks to make a decision and subject to more accountability after a review by the state’s Productivity Commission earlier this year.
Environmental campaign group Lock The Gate Alliance slammed the government’s decision. “This entire process has been highly politicised and the people of NSW will bear the cost,” Lock the Gate NSW spokeswoman Georgina Woods said.
“We’re appealing to the IPC to ignore the political pressure and demonstrate its independence by refusing approval for this polluting project and safeguarding the people, water, and future of the state’s north west.
EnergyAustralia, which owns a stake in Narrabri, warned in October that the IPC risks being dominated by special interest groups, potentially damaging the plight of major gas and coal projects in the state.
Chemical producer Perdaman Group, which hopes to build a $2bn ammonia plant using gas from Narrabri, threatened in May to pull that spending from the state as frustrations mount that delays may cripple the viability of manufacturers’ investment pipeline.
Santos submitted its environmental impact statement for Narrabri in February 2017 to the NSW Department of Planning and Environment and has been frustrated over the longwinded regulatory hurdles, arguing the development could help ease the tight east coast market.
The Andrew Forrest backed LNG import terminal at Port Kembla, competing with Narrabri to supply gas to the market, cautioned this week that NSW and Victoria risk running out of gas by 2022 with regulatory uncertainty and low oil prices delaying urgent investments needed to cover a shortfall.
NSW Premier Gladys Berejiklian has indicated the state will tap LNG imports if Narrabri fails to be approved to meet a federal government deal to supply an extra 70 petajoules of gas into the east coast domestic market.
The environmental impact of onshore gas developments and fracking continues to be highly contested by environmental and green groups worried about potential damage to groundwater and agricultural land.
The 850-well proposal receiving a record 23,000 submissions on its environmental impact statement, with 98 per cent opposed to the project although about a third of local submissions supported the development, the Department of Planning said.
Santos has previously referenced the NSW Chief Scientist’s 2014 inquiry into coal seam gas, which concluded the fossil fuel can be safely extracted from coal seams with the right safeguards and controls.
Some 95 per cent of the gas extraction will come from the Maules Creek formation, which is 800 to 1200m underground. The balance would come from the Black Jack Group, 500m below ground. The 25-year Narrabri project covers 95,000 hectares in northwestern NSW.
A CSIRO study this year found the use of fracking to extract coal seam gas in Queensland had little to no impact on groundwater, waterways, soils or air quality in findings boosting the industry’s battle to win over opponents concerned over environmental damage.
Lobby group Business NSW said the project was urgently needed to secure gas for the state’s homes and businesses.
“While of course the Independent Planning Commission has final say on the development, it is encouraging to see the State Government give it the tick of approval,” Business NSW chief executive Stephen Cartwright said.
