Santos has announced in its latest ASX investor update that a final investment decision (FID) on its Narrabri gas project will not take place until 2025.

This comes after the Australian federal government recently announced it will reassess the company’s Hunter Gas Pipeline under Commonwealth environmental laws. The project decision will remain open until 8 December 2023.

Santos’s FID delay also follows after the New South Wales government’s cancellation of the Narrabri Special Activation Precinct (SAP), after consideration of the 2023 NSW Government’s Strategic Infrastructure Review.

The purpose of the review was to ensure that capital expenditure delivered maximum benefits to NSW citizens.

The NSW government decided to utilise the area for some ‘light industrial purposes’, as well as for the provision of more housing.

The federal government approved the project in November 2020, with the conditions of approval consistent with those set by the NSW Independent Planning Commission.

Santos stated that the Narrabri Gas Project could supply NSW homes, small businesses, major industries and electricity generators with up to half the state’s natural gas needs and believes that it will bring substantial economic benefits to Narrabri and the region.