Santos shares fell yesterday in the wider market slide, despite its controversial northern NSW gas project moving one step closer.
The NSW Independent Planning Commission announced that it had given “phased approval” for Santos’ $3.6 billion Narrabri gas project in the northeast of the state.
The decision greenlighting the coal seam gas project came more than three months after the state’s planning minister referred it to the regulatory body.
The news saw Santos shares dip 3.9% to $4.88 as investors ignored the approval and focused on another slide in global oil and gas prices.
The ‘phased approval’ has 134 conditions placed on by the Commission.
“Following its detailed deliberations, the commission concludes the project is in the public interest and that any negative impacts can be effectively mitigated with strict conditions,” the commission’s statement said.
“The commission has granted a phased approval that is subject to stringent conditions, which means that the applicant must meet specific requirements before the project can progress to the next phase of development.”
During the hearing process local communities, some National party members, farmers, and scientists raised concerns the project would put the area’s water resources at risk.
In its consultation phase, the project attracted approximately 23,000 submissions, with opposing views that it would hinder the quality of the groundwater and concerns surrounding greenhouse gas emissions.
Santos has said the project will create up to 1,300 construction and 200 operational jobs when it is completed.
Australian Workers’ Union national secretary Daniel Walton said the Narrabri project would ensure NSW was provided with lower gas prices, which would mean cheaper electricity for households.
“Our union has never accepted the false choice between gas and renewables – you need the reliability of the former to allow the latter to flourish,” he told the media.
The project won’t be started for more than two years. The company has to work with the Federal government to sort out biodiversity issues and will have to try and placate the strong opposition from local farmers in particular who are worried their already water-short properties will lose even more resources.
“Santos is excited about the prospect of developing the Narrabri Gas Project, a 100 percent domestic gas project that can provide the lowest-cost source of gas for NSW customers,” CEO Kevin Gallagher said in a statement welcoming the decision.
