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.
The 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.
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.
Santos Narrabri Gas Project declared strategic in NSW
Located approximately 30 kilometers southwest of Narrabri, the project area will cover 98,000 hectares along the Pilliga forest.
In addition the program of decommissioning of the production wells and site rehabilitation has been fully integrated in the Narrabri Gas Project.
– Gas field drilling and production wells
– Gas and water gathering systems
– In-field compression
– Water treatment and recycling facilities
– Power generation plant
– Power distribution network and utilities
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.