Narrabri Gas Project Approved

THE New South Wales Independent Planning Commission (IPC) approved the $3.6 billion Narrabri Gas Project today, allowing the Santos energy company to prepare the construction of 850 gas wells across 95,000 hectares in the north eastern part of the Pilliga forest.

Santos plans to extract gas from coal seams at 800-1200m metres, but will undergo further strict approval phases before production begins.

Members of NSW Farmers have voiced their concern over the project, saying it poses an unacceptable risk to rural communities, water resources, soil quality, air quality and local food and fibre production.

James Jackson, NSW Farmers president said the Government’s own Independent Water Expert Panel identified that the Narrabri Gas Project may result in groundwater depressurisation and drawdown of aquifers and changes to surface water flow and quality as a result of discharges.

“There is also no certainty for farmers regarding insurance public liability and environmental risk if they have CSG operations on their land,” Mr Jackson said.

“The NSW Parliamentary Inquiry described the coal seam gas industry as ‘uninsurable’ and a number of general insurers providing farm insurance have indicated that they are not willing to insure the public liability risk for farmers that have CSG infrastructure on their property,” he said.

“This is a disappointing decision from the IPC,” he said.

“Our members have indicated very clearly that they have no appetite for risk to their precious water sources…and they cannot support any activity that could pose a risk to the precious Great Artesian Basin and other water sources,” said Mr Jackson.

Santos has stated the project has the potential to supply half of NSW’s natural gas demand and once all approvals are in place, will commence a twelve to 18-month appraisal drilling program and expand their water monitoring network. 

Kevin Gallagher, Santos Managing Director and Chief Executive Officer said the New South Wales Government and IPC process has been comprehensive, transparent and inclusive.

“The IPC outcome confirms that we have relied upon the best science to ensure that the Narrabri Gas Project can be developed safely and sustainably,” Mr Gallagher said.

“We are committed to now delivering on our promise to protect the environment and water resources as we proceed with project development,” he said.

“As the economy recovers from COVID-19, game-changing projects like the Narrabri Gas Project are critical to creating jobs, driving investment, turbo-charging regional development and delivering more competitive energy prices,” he said.

“This major step forward is welcome, but we must now gain the approval of the Federal Minister for the Environment under the EPBC Act as well as other subsequent approvals,” said Mr Gallagher.

Related Story: Scott Morrison: Deadline For Electricity Plans in the Hunter – September 15, 2020.