Santos lodges application, EIS for NSW gas project

PERTH (miningweekly.com) – Oil and gas major Santos has submitted a development application and environmental-impact statement (EIS) for its Narrabri gas project to the New South Wales government.

Santos MD and CEO Kevin Gallagher said on Wednesday that the company had spent time producing a comprehensive EIS so the local Narrabri community and stakeholders could be confident the environment and water would be protected as the project is developed.

“The EIS has concluded the project can proceed safely with minimal and manageable risk to the environment,” Gallagher said.

“The Narrabri gas project has the potential to play a significant role in the domestic energy space. Natural gas has a vital role to play in delivering energy security, whilst having the additional benefit of being 50% cleaner than coal resulting in a significant reduction in carbon emissions. The development of new natural gas resources is crucial in assisting Australia’s move towards a clean energy future.”

Some shareholders have previously pushed for Santos to distance itself from the Narrabri project, which was facing sustained community opposition and a legal challenge in the New South Wales Land and Environment Court over the approval of a wastewater treatment facility in the Pilliga forest.

Shareholders feared that the project would threaten the company’s reputation, and considering it was the sole coal seam gas project proposed for New South Wales, could make the company look like a “rogue operator”.

The Australian Petroleum Production and Exploration Association (Appea) has welcomed the company’s submission of a development application.

“Without prejudging the outcome of the regulatory process – which will be exhaustive – there can be no doubt Santos has produced a high-quality assessment, which addresses all potential issues,” said Appea CEO Dr Malcolm Roberts on Wednesday.

“There can also be no doubt that all gas users on the east coast urgently need new supply to be brought into the market.

“The east coast faces a supply shortfall as early as 2019. Unless new projects are developed quickly, customers will face higher prices and tighter supply.  This will not only mean higher energy bills for families, but also more pressure on manufacturers using gas to make products such as fertilisers, glass and plastics. In New South Wales alone, these industries employ more than 300 000 people.”

However, Roberts warned that the project was likely to be the subject of “activist fear campaigns”, adding that it was important that some fundamental facts were not lost in the “post-truth, social media frenzy from activists”.

Roberts pointed out that the project would be assessed through a rigorous, independent process, which would examine all relevant issues, especially environmental concerns and possible social impacts, and that the EIS included comprehensive, new research and data, including on ground surveys and ground water impact assessments.

Furthermore, he noted that Santos was not applying for approval to conduct hydraulic fracturing.

The proposed project could supply up to 50% of New South Wales' gas needs, and could create about 1 300 jobs during the initial construction phase, and around 200 ongoing jobs. Over its life, the project will generate around A$1.2-billion in state royalties and could deliver up to A$120-million to the Gas Community Benefit Fund.