Santos energy group has signed a non-binding memorandum of understanding with ENGIE with the objective of securing the future supply of natural gas from the Narrabri from the Narrabri project to the domestic market on the east coast of Australia.
Guaranteed gas supply for the local market
If the agreement is finalized, ENGIE will receive up to 20 petajoules (PJ) of gas per year for at least a decade from the start-up of the field, with 100% of the volume going to local consumption. This agreement represents a key step towards strengthening access to competitive and secure gas in New South Wales.
In addition to supply, both companies will evaluate joint decarbonization actions, especially through the carbon capture and storage project. carbon capture and storage project Moomba Phase 2, developed by Santos. These initiatives are part of both companies’ commitment to energy transition and emissions reduction.
Santos CEO Kevin Gallagher stressed the urgency of strengthening local supply in the face of pressure on prices and demand in the eastern region of the country. He recalled that in 2020 Santos voluntarily committed to allocate all of Narrabri’s production to the Australian market.
Investment, approvals and regulatory challenges
Narrabri has been the subject of a decade of studies, investments of more than A$1.5 billion and extensive regulatory reviews. The final approval of the project by the New South Wales Planning Commission considered the environmental risks of the project to be too high. environmental risks are manageable with rigorous engineering standards.
The materialization of the agreement is subject to a final investment decision by Santos, the signing of a binding supply contract and the required approvals.
Local supply from Narrabri is emerging as a strategic alternative to reduce import dependency and stabilize costs for residential and industrial consumers in the region. Santos’ experience in other developments such as the Surat Basin reinforces its confidence in replicating a safe and efficient operating model in New South Wales.
Source and photo: Santos
