Santos has signed a non‑binding memorandum of understanding with ENGIE for the supply of natural gas from the Narrabri gas project to the domestic market.
Under the proposal, Santos would deliver up to 20 petajoules per year for at least ten years from first gas, with ENGIE committing all of the gas to the domestic market.
Santos CEO Kevin Gallagher said the company is confident that Narrabri will be a very competitive source of domestic gas supply for the east coast market that is further advantaged by proximity to customers in NSW.
Gallagher also said Santos bought this asset in 2011 and has been working for over a decade to develop it, investing more than $1.5 billion to date.
“Delays to bringing Narrabri gas to market have occurred as a result of a number of factors including government moratoriums, independent scientific reviews, delayed and lengthy approvals, legal appeals and native title processes.
“This is a strategic project that now needs Santos, along with state and federal governments, putting their shoulders to the wheel and working together to make it happen.
“Narrabri will be subject to some of the strictest environment and groundwater protections in the world, and we will comply with them.
“The federal government’s clear Future Gas Strategy shows that there will be no energy transition to renewables without gas backup and no Future Made in Australia without the gas that is required to make things.”
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