Narrabri Shire Council general manager Eloise Chaplain and mayor Darrell Tiemens, with Santos managing director and CEO Kevin Gallagher and Santos manager community NSW Andrew Snars. Photo: Santos

AFTER years of setbacks, Santos’ Narrabri Gas Project appears to be gaining momentum as a supplier of energy for domestic and industrial use in New South Wales.

While signs of support for the coal-seam gas project have come from the NSW Government and the Narrabri Shire Council, NSW Farmers is warning against its potential to damage food security and groundwater.

“NSW Farmers does not, and cannot, support the Narrabri Gas Project; we believe it would come at an unconscionable cost to the state,” NSW Farmers president and Liverpool Plains farmer Xavier Martin said.

NSW Farmers president Xavier Martin.

“This project poses an unacceptable risk to the groundwater these farms and communities rely on, not to mention soil and air quality, and local food and fibre production.

“There is clear evidence to prove it, with nearby CSG mistakes fresh in the minds of the community.

“They should look for energy solutions elsewhere.”

NSW Farmers said politicians pointing to CSG as an alternative energy source to coal displayed a “shocking double standard”.

“What we’re really talking about is destroying the environment to protect the environment; it’s just a nonsense.”

Premier, mayor supportive

Recent support for the Narrabri Gas Project has come from NSW Premier Chris Minns, who at The Australian’s September 23 Energy Nation Forum was quoted as saying the project was “incredibly important for our state”, and could provide half of NSW’s gas needs.

“We need that project to go ahead because it’s absolutely crucial to our industrial base,” Mr Minns was quoted in The Australian as saying.

On the local front, Santos last month signed a non-binding memorandum of understanding with NSC to supply natural gas to businesses operating in the Northern NSW Inland Port, on the western edge of Narrabri, from project commencement.

This is despite the Federal Government in 2023 withdrawing its support for the Northern NSW Inland Port.

Subject to capacity and Santos’ final investment decision for the project, the agreement would see Santos supply NSC with up to 3.2 petajoules per year of competitively priced natural gas for up to 10 years.

The agreement follows off-take arrangements signed with energy company ENGIE in August and explosives and mining chemical manufacturer Orica last month.

NSC mayor Darrell Tiemens said access to a reliable and competitively priced energy source was crucial to attracting new industries, expanding employment opportunities, and realising Narrabri’s potential as an industrial hub.

“Narrabri Shire is proud to secure the cheapest gas in NSW, giving our existing businesses certainty and providing the spark to attract new industries,” Cr Tiemens said.

The southern section of the Hunter Gas Pipeline shown in green, which is proposed to link Wallumbilla in Qld with Newcastle in NSW via local government areas including those marked in yellow. Image: Santos

Santos bought the Narrabri Gas Project asset in 2011, and its wells are already supplying the Wilga Park Power Station, south-west of Narrabri, producing enough electricity to power 32,000 homes.

It has been operating for some years, and was initially supplied by the Bibblewindi and Bohena CSG pilots via a 32km buried pipeline.

Santos in 2022 acquired the Hunter Gas Pipeline, which owns an approved underground gas pipeline route linking Wallumbilla in Queensland to Newcastle.

It is expected to link into the Narrabri Gas Project, taking gas to coastal domestic consumers, and potentially bringing hydrogen made in Newcastle inland.

The Narrabri Gas Project in 2019 was announced as being the supplier to a proposed Perdaman ammonium nitrate plant, plans for which appear to have been shelved in the wake of regulatory delays.

Opposition continues

The Gomeroi people in 2012 registered a Native Title claim over the Pillaga, and continue to lobby against development of the Narrabri Gas Project in the region south and south-west of Narrabri.

‘The NSW Independent Planning Commission’s approval of the project was one of the most controversial in NSW history with Gomeroi, farmers, local residents and environmentalists all fighting hard against it,” a statement on the Gomeroi Gaarr website reads.

“A record 23,700 people and organisations made submissions to the IPC against the proposal and only 300 supported it, but it was approved anyway.”

The Greens, as well as several unions, are also campaigning in opposition to the project.

“Santos is reeling from their collapsed sale in the wake of damning revelations about unchecked gas leaks in the Northern Territory,” MUA Sydney branch secretary Paul Keating said.

“What we’re seeing is state governments desperately trying to throw a lifeline to their mates in a mining industry that has passed its use-by date,” Mr Keating said.

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