Compulsory acquisition considered for Narrabri gas project as Minns chases firming power
The NSW government will consider compulsory acquisition of land around Narrabri to fast-track the stalled $3.6bn gas project following warnings about the Tomago smelter’s future.
Tracts of land around the proposed Narrabri gas field could be compulsorily acquired to get the $3.6 billion project moving NSW Premier Chris Minns has revealed, while delivering a full-throated defence of mining to his own union.
Mr Minns, speaking to a meeting of state delegates from the Australian Workers’ Union on Wednesday, said his plans to get Santos’ Narrabri gas project moving had been supercharged by news this week the operators of the Tomago aluminium smelter had begun talking to its workforce about potentially closing.
The Premier said the state has “offered (Tomago owners Rio Tinto) a significant financial support, as has the Commonwealth government”.
“But what this tells me is that we can’t sit around waiting for Rio (Tinto) to make an investment decision … we need to act now,” he said.
“And more than anything, I think it’s clear … when it comes to manufacturing in the Hunter and in New South Wales, we need energy … I want to send a clear message today that we need the Narrabri gas field to produce energy as soon as possible.”
“We’ve got half our state’s gas needs right there ready to go. We’re doing what we can to get things off the ground, and we need everyone else to get moving and to get on board as soon as possible.”
Mr Minns told the delegation his government had “made every approval that’s been in front of us in relation to the Narrabri project” since coming into office.
“I can tell you today that we want land holders to work with Santos and the owners of the fields to come to an agreement that works for both parties,” he said, before signalling for the first time the NSW government could buy up land if needed to get the project moving.
“But if that doesn’t happen, we will be considering compulsory acquisition of the pipeline easement around the field to ensure that the project gets going and that we can get energy into the manufacturing base of the Hunter for New South Wales.”
“That’s how important this project is for the state and for the entire east coast.”
Santos’ project, slated for Narrabri in NSW’s northwest, has faced years of legal and regulatory hurdles.
Santos chief executive Kevin Gallagher last month said progress on Narrabri “could be quicker” but “Santos’s commitment to Narrabri cannot be questioned”.
The Premier, who was addressing the union that has a formal campaign calling for the establishment of an Australian gas reservation, also used his speech to heap pressure on the commonwealth government to progress that measure, saying it was a “no-brainer”.
“What we need now is for Santos to, quite simply, commit to Narrabri and make an investment decision, and we need the commonwealth government to finally pull the eastern states together to establish the east coast gas reserve – so Australian gas is used to support Australian industry first,” Mr Minns said.
“Every other country in the world (with an) abundance of energy would be saving some for their own sector, their own economy, their own marketplace, their own jobs. The fact that we have to bid the international price for energy to fund our industry right here in New South Wales is a thing of the past.”
The Premier added negativity over the future of mining was misplaced, saying NSW has “got most of the critical minerals we need for electric cars and the future economy”.
NSW Farmers Association president Xavier Martin reacted to Mr Minns’ speech, saying his organisation “will fight any attempt to take farmers’ land away from them”.
“It is disappointing to hear the premier threaten this bulldozer approach despite the serious and genuine concerns farmers have about the project … The Narrabri gas project presents an incredibly high risk of leaving farmers and entire communities without drinking water, and we strongly oppose it,” he said.
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