Santos accused of ‘stringing everybody along’ over Narrabri gas project
Santos says Narrabri will stay in approval mode while it prioritises Beetaloo, deepening uncertainty around a long-delayed gas project in NSW.
Intelligence analysis by GPT-5.4 Mini
Santos has told investors it will not spend capital or “exert any effort” on Narrabri for now, instead focusing on Beetaloo in the Northern Territory. That has renewed criticism from opponents and kept the NSW project in limbo.
Santos has a gas project called Narrabri in New South Wales, but it is not rushing to build it. Instead, it is paying more attention to another gas area called Beetaloo in the Northern Territory.
Think of it like a kid with two big Lego sets. One set is half-built and waiting for missing pieces, while the other looks bigger and more exciting. The kid may focus on the bigger set first.
People near Narrabri are upset because they have been waiting a long time and still do not know what will happen. The company says it still wants approvals, but many people think it is just keeping the project alive without really moving it forward.
Analysis
What Santos said
Santos chief executive Kevin Gallagher told investors the company’s immediate focus is the Northern Territory’s Beetaloo Basin, which it sees as a much larger opportunity. He said Narrabri would remain focused on approvals, but that Santos would not be spending capital or making “any effort” on it for now.
Why Narrabri is stuck
The Narrabri gas project in north-west New South Wales already has its main approvals from 2020, but several key steps are still missing: a production licence, a pipeline licence, and approval for a lateral pipeline. That pipeline would link into the Hunter gas pipeline, which has drawn strong opposition from landowners. The project is also facing a legal challenge from Gomeroi traditional owners under native title laws.
Political and community reaction
Opponents say Santos is stretching out uncertainty without committing to the project. Georgina Woods of Lock the Gate said the delay prolongs stress for communities that have spent years fighting over farmland, water and cultural heritage, and urged the company to abandon the project entirely.
In state parliament, independent MP Roy Butler pressed Premier Chris Minns on whether Narrabri had become smaller and more carbon-intensive than expected. Minns replied that gas still fits NSW energy needs, especially for peaking power and manufacturing, while also saying it is consistent with the state’s net zero goals.
Santos’ broader strategy
Gallagher said the company’s strategic review had deprioritised some eastern Queensland and Western Australia assets. He argued Beetaloo could hold enough gas to supply LNG and the east-coast market for decades, which could reduce the need to push ahead with some other domestic projects. For Narrabri, the company says final investment cannot happen until all required approvals are in place.
Key points
- Santos told investors it will not spend capital or put major effort into Narrabri while approvals are still pending.
- The company is prioritising exploration and appraisal work in the Beetaloo Basin, which it says is a much larger gas resource.
- Narrabri still lacks a production licence, a pipeline licence and approval for a lateral pipeline.
- Opponents say the delay prolongs uncertainty for communities, farmland, water and cultural heritage.
- NSW Premier Chris Minns says gas still fits the state’s energy needs and net zero plans.
