Santos chief executive Kevin Gallagher has told an investor briefing that the company will not be “exerting any effort” on its Narrabri gas project while it awaits outstanding approvals, sparking fresh questions about the future of the controversial development in north-west New South Wales.
Santos Prioritizes Beetaloo Basin
Gallagher stated this week that the company is prioritizing exploration in the Northern Territory’s Beetaloo Basin, where it is pursuing an expansion. He explained that a strategic review had determined Santos’s reserves in eastern Queensland and Western Australia’s Browse Basin should be “deprioritised.” According to the published briefing, the Narrabri project will be subject to “further review” in 2027 after the company completes an appraisal of its Beetaloo reserves.
“Narrabri, it’s really about just focusing on approvals and … you know, continue with that, but again, not spending any capital or exerting any effort on that route,” Gallagher told investors. “And some of these [domestic] assets will be re-evaluated once we’ve appraised the Beetaloo, and for obvious reasons. If the Beetaloo works, then it changes what we might want to do with some of those assets. There’d be less of a requirement in some cases to do anything with any of them … because the Beetaloo has a scale.”
Gallagher claimed the company believes its acreage in the Beetaloo Basin contains enough gas “to supply 10m tonnes of LNG and supply the east-coast market for more than 50 years – it’s a phenomenal resource.”
Opposition to Narrabri Project Intensifies
The remarks have deepened uncertainty for opponents of the Narrabri project. While the project received its main approvals in 2020, other elements—including a production licence, a pipeline licence, and development approval for a lateral pipeline—remain outstanding. The lateral pipeline would connect to a larger Hunter gas pipeline, which has faced strong opposition from landowners in the region. The gasfield is also subject to a legal challenge from Gomeroi traditional owners under native title laws.
Georgina Woods, head of research and investigations for the grassroots anti-mining organisation Lock the Gate, accused Santos of “stringing everybody along.” She urged the company to “spike the project finally,” adding, “It’s not worth anything to them but it’s worth so much to the community – that forest and that aquifer.”
Political Reactions
In question time in the NSW parliament this week, independent MP Roy Butler asked Premier Chris Minns about the Santos briefing, which Butler described as “another delay to the Narrabri gas project.” Minns has been a vocal supporter of the development, threatening last year to compulsorily acquire land to clear the way for the Hunter gas pipeline.
Butler questioned: “Will the government acknowledge that the Narrabri gasfields are smaller than expected and high in carbon dioxide, which is not only contrary to the government’s climate change policies but also makes the gas more expensive to produce?” Minns responded that “it is not necessarily inconsistent with our energy needs in New South Wales.” The premier stated that the state would need about 5% of its total energy capacity from “peaking plants,” which run only during spikes in electricity demand. “We will also need gas for our manufacturing industry, and it has to come from somewhere,” he said, adding that this is consistent with the government’s net-zero ambitions and renewable energy investments.
A NSW government spokesperson said the Narrabri project is “critical for NSW and will be able to provide half of the state’s gas needs.” They noted that the Minns Labor government is opening new areas for gas exploration in the state’s far west alongside the Narrabri Gas Project.
A Santos spokesperson confirmed the company is continuing to pursue approvals for Narrabri, stating, “A final investment decision cannot be taken until all necessary approvals are in place, including native title, gas production and pipeline licences.”
