“The Federal Government’s decision to approve the Narrabri gas project not only endangers water and the environment, but will permanently lock NSW manufacturers into high gas prices,” said Richie Merzian, Climate & Energy Director at the Australia Institute.
“Australia Institute research shows high cost gas from Narrabri ($7.40 GJ at the wellhead) will displace lower cost gas from the Cooper Basin that currently supplies most of NSW gas (As low as $2.44 GJ). This will allow Santos to make windfall gains by diverting the cheaper Cooper Basin gas for export instead of their very expensive Gladstone LNG resources ($9.40 GJ).
“In fact, the Narrabri Gas Project will do nothing to improve energy security and reliability, it will simply push up gas prices and provide few benefits to the local community.”
Read the Australia Institute’s analysis of Santos’ Narrabri Gas Project submission here.
Figure: Comparison of Cooper and Gunnedah Basin (Narrabri) delivered cost to Sydney