A series of crumbling dominoes have led to the reported delay of Santos’ Narrabri Gas Project, potentially pushing the 2024 project back another year. 

The local Western Slopes Pipeline project was cancelled following unrelenting community opposition, making the delivery of the Hunter Gas Pipeline essential for the Narrabri Gas Project to succeed. 

However last week's decision by the Federal Government to reassess the impact of the Hunter Gas Pipeline has stalled progress from the gas giant, and Santos announced in an ASX investor update that a final investment decision (FID) now won’t take place on the project until 2025. 

A Santos spokesperson said that the Narrabri gas remains the cheapest source of supply for NSW customers. 

“Years of moratoriums, inquiries and regulatory delays have prevented development. Projects like Narrabri and the Hunter Gas Pipeline have never been more important for energy affordability and energy security for New South Wales,” they said. 

The decision to reassess the Hunter Gas Pipeline comes amid pressure from several community groups, including Lock The Gate. 

“Since the 2009 decision not to assess the pipeline, new information has come to light revealing the presence of threatened species along the pipeline route, including critically endangered Grassy White Box woodland, as well as the Regent Honeyeater, Spotted-tailed Quoll, Booroolong Frog and Corben’s Long-eared Bat,” Lock the Gate Alliance National Coordinator Carmel Flint said. 

“That need has only become more critical following the Black Summer bushfires, which pushed many ecological communities to the brink.

"Santos’ pipeline could be the straw that breaks the camel’s back for endangered species whose homes would be destroyed for this project,” she said. 

Narrabri’s Special Activation Precinct falls

This year, the development of the Narrabri Special Activation Precinct - designed to bring investment, jobs and economic boosts - was cancelled after it failed the NSW Government’s Strategic Infrastructure Review. 

The precinct had long been criticised as ‘gas-fed’ by renewable energy advocates, although the precinct was requested and supported by Member for Barwon Roy Butler (who has openly opposed the Narrabri Gas Project), to provide local employment and economic stimulation.

While several purposes were intended for the Special Activation Precinct, it was announced by former Deputy Premier John Barilaro alongside the Strategic Opportunities for Gas in Regional NSW statement, as he stated his support for the Narrabri Gas Project. 

Despite critics of the project seeing the cancellation of the new precinct as a win against the future of the Santos project, it also means the loss of the predicted jobs and growth. 

However, Narrabri Shire Councillor Rohan Boehm said that it can still be a step in the right direction. 

"I welcome any plans for a large and integrated industrial precinct in Narrabri. This can be powered by many forms of renewable energy with battery storage and new grid connections,” Cr Boehm said.

New Climate Laws

Meanwhile, new laws in NSW have made the state’s net zero emissions target a legally binding duty.

Under the change, the Net Zero Commission was awarded power to provide advice on coal and gas projects. 

“Empowering the Net Zero Commission to provide fearless and independent advice about coal and gas projects is a critical plank in ending fossil fuel reliance in NSW and something that should provide confidence to decision makers when refusing to open new projects,” Greens MP Sue Higginson said. 

“The Government is now on notice that we will hold them to account to this new law through Parliament and, if necessary, through the courts if they fail to meet their obligations.”

According to Santos’ September activities update, drilling was set to continue throughout 2023. There has been no further clarification of what activities, if any, will occur on site in the Pilliga Forest in the coming months.