Sydney Morning Herald: Santos Stunned by NSW Labor Threat to $2b Coal Seam Gas Project

Santos has been left stunned by a pledge by NSW Opposition Leader Luke Foley to ban coal seam gas from the Pilliga region if Labor wins government, a move that has undermined the whole future of its proposed $2 billion Narrabri project.

While a Labor win in the March 28 election is seen as unlikely, the pledge has removed bipartisan support for the Narrabri venture, without which Santos and its partners would be reluctant to commit the capital required to develop the controversial project, which could supply up to half of the state's gas needs.

"It is disappointing that the Labor party has decided to play politics with a very important product for the state long term," said James Baulderstone, Santos's vice-president, eastern Australia.

He accused NSW Labor of "putting out policies on the run" without thinking through the consequences. He said he expected "common sense to prevail" after the election and that the policy would be rethought. MORE