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Santos submitted referral for Australia Narrabri Gas Project

Narrabri CBM to supply New South Wales gas market

On November 2014, the Adelaide-based independent oil and gas company Santos Ltd (Santos) and its partner EnergyAustralia ltd submitted an Environment Protection and Biodiversity Conservation (EPBC) referral to the Commonwealth Government for the environmental assessment of its Narrabri coal bed methane (CBM) project in the New South Wales (NSW) Gunnedah Basin.

On Eastern Australia, the New South Wales State benefits for decades of energy self-sufficiency with the exploration of the coals mines and gas fields.

Santos_Narrabri_Gas_Project_New-South-Wales_MapThe evolution of the exploration technologies enabled Santos and other companies to develop the local CBM resources of coal and to plan multiple liquefied natural gas (LNG) projects to supply Northeast Asia countries.

With the on going construction of these giant LNG projects, the question came up to secure still competitive prices on the gas supply for the domestic market in NSW.

Even in a context where high labor costs have affected number of oil and gas projects, especially in Australia, the guaranty of supply to the  local market has first priority.

In the New South Wales, Santos declared 2.6 trillion cubic feet (tcf) resources of natural gas out of which 1 tcf are classified as 2P (proven and probable) reserves.

After years of slow moving, the Santos Narrabri CBM project is accelerating.

Santos Narrabri Gas Project declared strategic in NSW 

In February 2014, Santos and the NSW Government signed a memorandum of understanding (MOU) for the gas supply to be delivered from the Narrabri Gas Project recognized as a Strategic Energy Project.

Located approximately 30 kilometers southwest of Narrabri, the project area will cover 98,000 hectares along the Pilliga forest.

In order to minimize the environmental footprint of the Narrabri CBM project, Santos and its partner EnergyAustralia will use only one percent of this surface to develop the project.

In addition the program of decommissioning of the production wells and site rehabilitation has been fully integrated in the Narrabri Gas Project.

Estimated to require $2 billion capital expenditure, Santos Narrabri Coal Bed Methane project should include:

Santos_NSW_Narrabri_Coal-Bed-Methane_View – Gas field drilling and production wells

 – Gas and water gathering systems

 – In-field compression

 – Gas central processing facility (CPF)

 – Water treatment and recycling facilities

 – Power generation plant

 – Power distribution network and utilities

The gas central processing facilities and the water treatment plant will be located at the Leewood property.

In addition to the upstream part of the Narrabri CBM exploration and production project, Santos is planning to link its Narrabri Gas Project with the Eastern Australia pipelines distribution system through a gas trunkline project.

This export pipeline project will be handled as a separated project.

In the meantime Santos and its Partner EnergyAustralia are expecting to receive all the regulatory approvals along 2015 in order to start the construction of the Narrabri Gas Project in 2016 for the first delivery of the coal bed methane to New South Wales domestic market by 2018.

For more information about oil and gas and petrochemical projects go to Project Smart Explorer

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