Santos Delays Narrabri Gas Amid Beetaloo Focus

Santos chief executive Kevin Gallagher has indicated that the company will not allocate resources to its Narrabri gas project in New South Wales while awaiting necessary approvals. This announcement was made during an investor briefing where Gallagher emphasized the company's focus on exploration and expansion in the Northern Territory's Beetaloo Basin.

A strategic review has resulted in the deprioritization of Santos reserves in eastern Queensland and Western Australia's Browse Basin. Gallagher stated that the Narrabri project would undergo further review in 2027, following an appraisal of the Beetaloo reserves.

Gallagher expressed confidence in the Beetaloo Basin, estimating its gas reserves are sufficient to supply 10 million tonnes of LNG and the east-coast market for over 50 years. This substantial resource could potentially reduce the need for other domestic assets.

Opponents of the Narrabri project, including Georgina Woods of Lock the Gate, have expressed frustration over the prolonged uncertainty, stressing the project's impact on communities and the environment. The project still requires a production licence, a pipeline licence, and development approval for a lateral pipeline.

In New South Wales parliament, independent MP Roy Butler questioned Premier Chris Minns about the delays. Minns affirmed the state's need for gas for energy security and manufacturing, stating it is consistent with net-zero ambitions and renewable energy investments.