Santos signs MOU with Narrabri Council for domestic gas supply from Narrabri Gas Project

Santos announces it has signed a non-binding memorandum of understanding (MOU) with the Narrabri Shire Council for the potential supply of natural gas from the Narrabri Gas Project to a new industrial precinct in a deal designed to attract new business and boost economic growth in the region.

The MOU outlines Santos’ commitment to supply natural gas to businesses operating within the Northern NSW Inland Port, on the western outskirts of Narrabri, from project commencement.

Under the proposed agreement, Santos would supply the Narrabri Shire Council with up to 3.2 PJ per year of competitively-priced natural gas for up to 10 years, subject to capacity of the Wilga Park Power Station lateral pipeline and Santos’ final investment decision for the project.

The agreement follows similar offtake arrangements signed with diversified energy company ENGIE and mining and infrastructure solutions provider Orica. The agreement reflects the overwhelming demand for Narrabri gas.

Santos bought the Narrabri Gas Project asset in 2011 and has been working for more than a decade to develop it, investing more than A$1.5 billion to date. Gas from Narrabri appraisal wells already supplies the Wilga Park power station, producing enough electricity to power 32,000 homes in New South Wales.