Santos signs MOU for Narrabri gas supply

Santos Ltd. signed a non-binding memorandum of understanding (MOU) with the Narrabri Shire Council to supply natural gas from the Narrabri Gas Project to the Northern NSW Inland Port on the western outskirts of Narrabri, New South Wales, Australia.

Under the proposed agreement, Santos would supply the Narrabri Shire Council with up to 3.2 PJ/year 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 non-binding MoU sets the foundation for further detailed planning, feasibility studies, and stakeholder consultations. Both parties intend to work collaboratively to move towards a binding agreement and implementation phase, subject to the outcomes of these initial steps.

Narrabri gas is produced from the Queensland coal seam. 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.