The statement outlined the state’s approach to the future of gas exploration, production and supply in NSW with potential shortages looming and an increased focus on curbing greenhouse gas emissions.
The statement described Santos’ Narrabri as “critical to drive regional economic development and support supply security”.
“The project, once confirmed and operational, is projected to inject up to 70 PJ of gas each year across its 25-year life,” it said.
“The Narrabri Gas Project would represent about half of the gas used in NSW.
“This will deliver on the commitment in the Energy and Emissions Memorandum of Understanding between the NSW and Commonwealth Governments to increase gas supply in NSW.”
The federal government approved the CSG project in November 2020, which followed a green light from the NSW Independent Planning Commission in October.
The Australian Workers’ Union (AWU) welcomed the statement, saying it was an important clarification of the important role gas had to play in the state’s future.
“The Narrarbi gas project has the potential to help Australian workers in a range of ways and I’m glad to see the NSW Government commit to these today,” said AWU National Secretary Daniel Walton.
“Connecting NSW directly to the Australian Gas Supply Hub in Wallumbilla will be a crucial move, given the current pipeline has been at capacity during the current high market.
“Crucially, the AWU has long emphasised the important and special role gas has in supporting manufacturing.
“We are therefore very happy to see ‘a Special Activation Precinct (SAP)’ at Narrabri underway to enable opportunities for energy-intensive manufacturing, like fertiliser and plastics manufacturing, to be located near a secure and reliable gas supply.”
But the Australian Petroleum Production and Exploration Association (APPEA) said the statement’s limiting of gas exploration beyond Narrabri would keep gas prices high and risk thousands of jobs.
“It is pretty simple, the cheapest gas is the gas closest to market,” said APPEA NSW Director Ash Wells.
“This shortsighted decision will mean higher gas prices in NSW are the norm not the exception.
“For the NSW Government to effectively ban a proven, safe and highly regulated industry doesn’t make sense.
“The failure of NSW to respond to increasing gas demand and develop its gas reserves will have unfortunate consequences, in the form of lost jobs, higher energy prices, and foregone economic opportunity.
“Manufacturing jobs will go to other states and territories or overseas.”
Click here to read a full copy of the statement.