The New South Wales (NSW) Government’s Independent Planning Commission (IPC) has given ‘phased approval’ of a multibillion-dollar coal seam gas field, subject to stringent conditions.

Santos NSW (Eastern) Pty Ltd sought development consent for up to 850 gas wells and associated infrastructure across a 95,000-hectare project area, encompassing the Pilliga State Forest and privately-owned farmland, southwest of Narrabri.

According to Santos, the $3.6-billion Narrabri Gas Project will create up to 1,300 construction and 200 operational jobs, while shoring up supply for the east coast domestic gas market.

The project has the potential to produce up to 200 terajoules a day for at least 20 years, which is up to half of the state’s gas demand.

The NSW Department of Planning, Industry and Environment (DPIE) finalised its whole-of-government assessment of the project in June 2020. It came to the IPC for determination after almost 23,000 public objections were received during exhibition.

Commissioners Stephen O’Connor (Panel Chair), John Hann and Professor Snow Barlow were appointed to consider the state significant development application.

The Commissioners met with Santos, the DPIE and its Water Expert Panel, Narrabri Shire Council and other key government agencies, and inspected the site and surrounding areas.

They also held a seven-day electronic public hearing – as directed by the NSW Minister for Planning and Public Spaces – to listen to the community’s views on the project.

Issues raised at the public hearing and in more than 11,000 written submissions to the IPC included groundwater impacts; climate change impacts from greenhouse gas emissions; biodiversity impacts; impacts on agriculture; bushfire impacts; employment impacts; health impacts; impacts on Aboriginal cultural heritage; and management of waste (including salt).

After a thorough examination of all the evidence lasting more than 15 weeks, the Commission today (30 September 2020) determined that consent should be granted to the project, subject to 134 conditions.

“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 of Reasons for Decision reads.

“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… The Commission notes that the approval does not include consent for the proposed gas fired power station at Leewood, the Westport workers accommodation or non-safety flaring infrastructure.”

The four phases of development are: 1) appraisal; 2) construction; 3) production; and 4) rehabilitation.

The Commission specifically addressed in its Statement of Reasons key issues of concern including groundwater, greenhouse gas emissions, biodiversity, water management, aboriginal cultural heritage, bushfire risk, economic impacts, and social and health impacts.

The Commissions ‘Statement of Reasons for Decision’ can be found here.

The Conditions of Consent for the Narrabri Gas Project can found here.

 

Santos welcomes the news

Santos advised that it accepts the conditions proposed by the IPC and will now work with the Federal Department of Agriculture, Water and Environment as it considers its recommendation to the Minister on EPBC Act approval.

Key to this recommendation will be that the NSW’s assessment process has adequately addressed all relevant matters of national environmental significance.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said the State Government and IPC process has been comprehensive, transparent and inclusive, providing the community with confidence the project has been properly evaluated and determined to be in the public interest and capable of development without harm to water resources or the environment.

“Santos is excited about the prospect of developing the Narrabri Gas Project, a 100 per cent domestic gas project that can provide the lowest-cost source of gas for NSW customers,” Mr Gallagher said.

“As the economy recovers from COVID-19, game-changing projects like the Narrabri Gas Project are critical to creating jobs, driving investment, turbo-charging regional development and delivering more competitive energy prices.”

“This major step forward is welcome, but we must now gain the approval of the Federal Minister for the Environment under the EPBC Act as well as other subsequent approvals.”

While these approval processes are underway, Santos is expected to commence planning for workover activities immediately on existing wells under its current exploration tenures.

Once all approvals are in place, this will be followed by a 12 to 18-month appraisal drilling program, including expansion of the company’s water monitoring network. This appraisal will inform the final plans for the phased development of the project.

“The IPC outcome confirms that we have relied upon the best science to ensure that the Narrabri Gas Project can be developed safely and sustainably. We are committed to now delivering on our promise to protect the environment and water resources as we proceed with project development,” Mr Gallagher said.