Macquarie has voiced its concerns Santos Ltd (ASX: STO) shares could face heavy falls if its Narrabri coal seam gas project doesn't proceed, according to The Australian.
According to Macquarie, the Narrabri project accounts for about 27c of the Santos share price – potentially leading to about a 4% drop in price if it disappears.
Shares in Santos have been on a steady incline in the last 12 months, up 118% from its share price of $2.91 at this time last year.
But according to The Australian, billionaire Andrew Forrest's LNG scheme could see Santos shelve Narrabri, despite promises by the company its production would beat the price of imported gas.
Santos has come up against environmentalists and regulatory issues so far in its attempts to bring the long-delayed project to reality and investors with skin in the game no doubt feel nervous about what will eventuate.
Energy stocks have surged higher across the board today with Beach Energy Ltd (ASX: BPT) up 1.4% to $1.94 at the time of writing, BHP Billiton Limited (ASX: BHP) also up 1.2% to $34.29, Oil Search Limited (ASX: OSH) climbing 0.9% to $9.17.
