Australia’s Santos in new domestic gas supply move

Australian LNG player Santos said it has purchased a company that owns an approved underground pipeline route to deliver natural gas from its planned Narrabri gas project to the domestic market.

Hunter Gas Pipeline owns a gas pipeline route from Wallumbilla in Queensland to Newcastle in New South Wales, close to Santos’ Narrabri project.

Santos said in a statement on Thursday the company’s goal is to “work with infrastructure developers and owners to construct the pipeline and deliver much-needed gas to east coast domestic markets in the shortest timeframe possible.”

In addition, Santos said it would also design the pipeline to transport hydrogen as customer demand evolves during the energy transition.

Santos’ midstream and clean fuels president, Brett Woods, said in the statement that the acquisition provides a pathway for the delivery of gas from the Narrabri project to the domestic market, subject to a short connection to the main pipeline, which is currently in the planning phase.

“At a time when the ACCC is forecasting domestic gas shortfalls, our Narrabri project will inject new supply into southern domestic markets and put downward pressure on gas prices for New South Wales businesses, manufacturers and families,” Woods said.

Once fully operational, Narrabri has the potential to deliver more than half NSW’s gas demand, according to Santos.

Subject to receiving remaining government approvals, Santos expects construction of the pipeline to start in early 2024.

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