Santos' Narrabri CBM Project Gets Oz Approval

Australian federal government has approved Santos’ Narrabri coalbed methane project, the company said on November 24 in a statement. This follows New South Wales (NSW) Independent Planning Commission’s (IPC) conditional greenlight in September.

“Santos welcomes federal environment minister Sussan Ley's approval of the Narrabri gas project and will now embark on a 12 to 18-month appraisal programme ahead of a final investment decision (FID) for the next phase of project development,” it said.

Santos CEO Kevin Gallagher said the conditions on the approval were consistent with those already set by the NSW IPC and generally in line with those for the company’s GLNG operations.

"Santos is excited about the prospect of developing the Narrabri gas project, a 100% domestic gas project that will deliver the lowest-cost source of gas for NSW customers,” Gallagher said. "The approval process has been comprehensive, transparent and inclusive, providing the community with confidence the project has been properly evaluated using the best available science, is in the public interest and is capable of development without harm to water resources or the environment.”

The project got the state government approval in June. It has been mired in controversy as many activists say it poses a risk to the local environment. Santos has always denied these claims. 

Santos said it has already started workover activities on existing wells under its current exploration tenures and is working to get various agreements in place that are required prior to the next phase of development.