Santos (ASX:STO) share price on watch following Narrabri Gas Project approval

The Santos Ltd (ASX:STO) share price will be on watch on Wednesday after its Narrabri Gas Project gained Federal approval…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Santos Ltd (ASX: STO) share price will be one to watch on Wednesday following the release of a positive announcement after the market close.

oil drill in sunset

Image source: Getty Images

What did Santos announce?

This afternoon Santos revealed that Federal Environment Minister Sussan Ley has signed off on the $3.6 billion Narrabri Gas Project.

As a result, it will now embark on a 12 to 18 month appraisal program ahead of a Final Investment Decision (FID) for the next phase of project development.

Pleasingly, Santos' Managing Director and Chief Executive Officer, Kevin Gallagher, notes that the conditions on the approval were consistent with those already set by the New South Wales Independent Planning Commission.

Furthermore, they were generally in line with those for its GLNG operations, where the company is operating safely and efficiently, and protecting water resources and the environment.

Mr Gallagher commented: "We accept the conditions from the Commonwealth, which are very much in line with our other operations across the country and welcome the approval that all relevant matters of national environmental significance have been adequately addressed."

"Santos is excited about the prospect of developing the Narrabri Gas Project, a 100 per cent domestic gas project that will deliver the lowest-cost source of gas for NSW customers," he added.

Mr Gallagher believes the development of the project will be a boost to the economy as it recovers from the COVID-19 pandemic.

The chief executive said: "As the economy recovers from COVID-19, game-changing projects like Narrabri are critical to creating jobs, driving investment, turbo-charging regional development and delivering more competitive energy prices."

What now?

The company has already begun workover activities on existing wells under its current exploration tenures and is working to get various agreements in place that are required prior to the next phase of development.

"Now all we want to do is to get on with creating jobs in New South Wales and Narrabri, and making a real difference to people's lives in rural and regional communities," Mr Gallagher concluded.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Siblings laying upside down on a couch.
Opinions

2 ASX 200 shares I'd want my kids to own

These are two of my top picks right now.

Read more »

A man sits cross-legged in a zen pose on top of his desk as papers fly around his head, keeping calm amid the volatility.
Share Market News

What $500 a month in ASX ETFs looks like in 10 years

Boring, automatic, and relentless. That's how most everyday wealth actually gets built.

Read more »

A man in a suit looks serious while discussing business dealings with a couple as they sit around a computer at a desk in a bank home lending scenario.
Share Market News

Here's what Westpac says the RBA will do with interest rates next week

Is there another rate hike coming next week? Let's see what Australia's oldest bank is forecasting.

Read more »

A graphic image of a pile of gold coins balanced precariously with a house on top with smoke coming out of the chimney and a human figure with hands up as if to shield himself from the prospect of the house falling.
Broker Notes

This debt collector could surge 47% on negative gearing changes, Shaw and Partners says

A weaker housing market could be a boon for this company.

Read more »

Three young nerds dressed in suits with thinking caps and lightbulbs
Broker Notes

Brokers name 3 ASX shares to buy right now

Let's find out which shares top brokers are feeling bullish about this week.

Read more »

A woman in a red dress holding up a red graph.
Broker Notes

4 ASX shares Macquarie says could return more than 40%

The broker has made some bold predictions.

Read more »

Three trophies in declining sizes with a red curtain backdrop.
Share Gainers

3 ASX 200 stocks leaping higher this week on big announcements

Investors sent these three ASX 200 stocks surging in this King's Birthday shortened trading week. But why?

Read more »

Two happy and excited friends in euphoria holding a smartphone, after winning in a bet.
Share Gainers

Why Brazilian Rare Earths, Evolution Mining, Magellan, and Qantas shares are racing higher today

These shares are ending the week on a high. What's going on?

Read more »