Santos’ preliminary Narrabri works approved after report clears it of improper landowner negotiations

Santos has the authority to undertake work on its eastern seaboard projects, including the Narrabri gas project, after a report cleared the oil and gas company of coercing land owners.

Santos has been granted the authority to undertake key works for its eastern seaboard projects, including supporting infrastructure for the controversial Narrabri project, after an independent report cleared the oil and gas company of coercing land owners.

The NSW government has renewed Santos’ authority to survey for the Hunter gas pipeline and granted an authority to survey for the Narrabri lateral pipeline.

The Narrabri lateral pipeline connects the Narrabri gas project to the Hunter gas pipeline and still requires development approval. Santos cannot seek environmental approvals until it has completed survey works.

The decision is likely to be welcomed by Australia’s gas industry and scrutinised by proponents who hope a looming eastern seaboard gas shortage could force NSW to approve new developments.

Santos is seeking to tap about 1500 petajoules of gas reserves from the Narrabri project.

Daily production of up to 200 terajoules has been predicted, accounting for about half of NSW’s current gas needs.

Australia’s eastern seaboard is under sustained pressure to find new sources of gas as ExxonMobil’s Longford facility supplies the bulk of gas to that part of the country but it is struggling to maintain production as supplies begin to wane.

The source is expected to be exhausted by 2028.

A demonstration against the proposed Santos gas field in Narrabri in 2022. Picture: Jeremy Piper

The Australian Energy Market Operator earlier this year said gas-powered electricity generators may have to burn diesel to meet demand as soon as next year under certain weather conditions or when supply is otherwise curtailed.

NSW Energy Minister Penny Sharpe, however, stressed the approvals did not mean the project would materialise.

“The projects are still in planning stages. The authorities to survey enable Santos to undertake studies regarding potential routes for the pipelines. Santos is yet to make a final decision to proceed with the pipelines and the Narrabri gas project,” Ms Sharpe said.

“Concerns raised about the consultation process used during the previous authority to survey have been taken seriously and investigated. I am satisfied that improvements will be made.”

Santos was been cleared of wrongdoing in its negotiations with landowners – a fresh victory by Santos against the Environmental Defenders Office – by an independent reported commissioned by the NSW department of energy and environment after some complaints.

The EDO had complained that Santos had threatened landowners with compulsory acquisitions, a claim that the independent report released on Thursday concluded that it found no evidence of, although it could not rule it out completely.

“It is possible that insufficient information has been provided by Santos agents in the past,” the report said.

“This investigation cannot conclusively rule this out without asking each landholder and Santos agent whether compulsory acquisition was discussed, and what specific information was provided in relation to it.”

Originally published as Santos’ preliminary Narrabri works approved after report clears it of improper landowner negotiations