Santos Advances NSW CBM Project

Australia's Santos has progressed its application to develop its Narrabri Gas coal bed methane project in New South Wales (NSW) by filing the State Significant Development Application and associated Environmental Impact Statement (EIS) to the state’s Department of Planning and Environment.

The EIS includes extensive studies and modelling on the environment in the project area, including on water, flora, fauna, soil, noise, air quality and cultural heritage, Santos said February 1.

Santos believes the project could supply up to 50% of NSW gas needs, although did not provide a volume figure in its summary information. Over its life, it expects the project to generate $1.2bn in state royalties and also $120mn to a Gas Community Benefit Fund to support local initiatives.

The company will make the gas available to NSW and the east coast domestic market via a pipeline linking into the existing Moomba to Sydney Pipeline. The pipeline will be constructed by APA Group and will be subject to a separate approval.

Location of Narrabri gas project in New South Wales (Map credit: Santos)

Australian gas infrastructure player APA Group January 31 announced the signing of the agreement with Santos to build a 450-km gas pipeline from Narrabri gas project to connect to the existing APA owned East Coast Grid through the Moomba Sydney Pipeline at the Bundure mainline valve station.

Shardul Sharma