The Narrabri Gas Project remains the focus of Santos in NSW, general manager Energy NSW, Mr Peter Mitchley told The Courier today.
The Courier sought a summary of progress on the Santos project as the year draws to an end.
Mr Mitchley dismissed opponents’ claims that the Narrabri project was threatened by the current downturn in global oil prices.
“The Narrabri Gas Project is a domestic gas project, not directly linked to the international oil price” he said.
However, he acknowledged that Santos derived significant revenue from oil and the oil price had halved in recent weeks.
“But that doesn’t mean you give up things that are important and the Narrabri project is very important to Santos” said Mr Mitchley.
“It’s like any business. If your revenues go down you are a bit more cautious about some of your expenses.
“The oil price does impact on our business and if we have to cut back on expenditure around the edges, of course we will, as any business operation does.”
The core aspects of the Narrabri project, the preparation of the Environmental Impact Statement (EIS), and producing pilots will continue as planned.
“NSW gas is needed for NSW” said Mr Mitchley.
“Work on the development of the Narrabri Project is continuing.
“We are absolutely focused on our EIS process, ensuring that we develop a comprehensive and quality document, and continuing to develop our pilot program.
“This is what has been budgeted for with the Narrabri project and this is exactly what’s happening” Mr Mitchley said.
Narrabri of Chamber of Commerce has welcomed Santos’ affirmation that the Narrabri Gas Project remains a key business focus for Santos.
“And we look forward to the release and processing of the EIS so this project can move ahead without further impediments” said chamber president Mr Russell Stewart.
“Many local businesses are gearing up for the arrival of the gas industry, with excitement and anticipation.
“Our members are solidly behind the Santos gas project.
“Santos is a strong, active and
important member of our chamber.
“And Santos’ contribution across the community is well known - the company has been supporting local groups and functions generously for years.
“The community of Narrabri, despite the claims of some anti fossil fuel groups, is very strongly in favour of the Santos gas project” Mr Stewart said. “We look forward to Santos consolidating its role in the community and continuing to move ahead with its plans in 2015.”