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.
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.”
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.