Name of the Project
Narrabri gas project.

Location
The proposed Narrabri gas project is located in New South Wales, Australia, south-west of Narrabri.

Project Owner/s
Santos NSW (Eastern).

Project Description
Santos is proposing to develop natural gas from coal seams in the Gunnedah basin. The project could supply up to 50% of New South Wales’ gas needs and provide significant benefits for the region and the state.

Narrabri has the potential to produce up to 200 TJ/d for at least 20 years, fulfilling up to half of the gas demand from New South Wales.

The proposal comprises the development of a gasfield with production and appraisal wells, gas- and water-gathering systems, as well as supporting infrastructure. The natural gas produced will be treated to commercial quality at a central gas-processing facility on rural property owned by Santos..

It is expected that up to 850 individual production wells, partnered to a maximum of 425 well sets, will be progressively advanced and decommissioned within the project area over the estimated 25-year life span of the project. This will include any core holes or pilots drilled as part of the exploration and appraisal programme that are converted to production wells.

The gas- and water-gathering systems, comprising a network of separate, low-pressure, underground pipelines, will link each wellhead to the infield compression gas-processing facility, and the water management, treatment and beneficial reuse facilities.

The central gas-processing facility will be built and operated at the Leewood property, with some infield compression potentially also required closer to the central location of the wells, depending on gas pressure. Infield compression will comprise package compressors that boost the gas pressure to allow for its being transported through one pipe to the central gas-processing facility.

The gas will be piped through a high-pressure gas-transmission pipeline to market, which is part of a separate approval process and not of the proposed development.

Potential Job Creation
The project could create about 1 300 jobs during the initial construction phase and about 200 permanent jobs, many of which will be locally based.

Capital Expenditure
The project is estimated at $3.6-billion.

Planned Start/End Date
Not stated.

Latest Developments
The New South Wales Independent Planning Commission (IPC) has approved the A$3.6-billion Narrabri coal seam gas project.

The grant of a phased approval will be subject to stringent conditions, requiring Santos to meet specific requirements before the project can progress to the next phase of development.

The approval does not include consent for a proposed gas-fired power station, workers’ accommodation or nonsafety flaring infrastructure.

Santos has accepted the conditions proposed by the IPC, and will work with the federal government as it considers its recommendations to the Minister for Environmental Protection and Biodiversity Conservation (EPBC) Act approval.

“This major step forward is welcome, but we must now gain the approval for the federal Minister for the Environment under the EPBC Act, as well as other subsequent approvals,” Santos MD and CEO Kevin Gallagher has said.

He adds that while the approvals are under way, Santos will start planning for immediate workover activities on existing wells under the current exploration tenure. Once all approvals are in place, a 12- to 18-month appraisal drilling programme will follow, which will inform the final plans for the phased development of the project.

The Australian Petroleum Production and Exploration Association has said that the approval of the Narrabri gas project is an important step in supporting jobs and economic recovery in New South Wales.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
Santos – Narrabri, tel +61 2 6792 9035.