Exploration
Santos began exploring for natural gas in NSW in 2008, mainly in the areas around Gunnedah and the Upper Hunter. In November 2011, Santos acquired Narrabri-based Eastern Star Gas and the company’s operations in and around the Pilliga.
Our operations in NSW are focused on the development of the Narrabri Gas Project, which could supply up to half of NSW’s natural gas needs.
The initial stages of the project involved the development of appraisal wells which are already delivering gas to the Wilga Park Power Station. The Wilga Park Power Station has an electricity generation capacity of 22 megawatts, enough to power 32,000 households across northwest NSW.
Santos is seeking approval from the NSW government to operate the four existing Kahlua pilot wells in PEL 1, approximately 20km west of Gunnedah, for a further two years to ensure that the data required to fully access resource potential is obtained. Minor civil and construction works, including the possible installation of a small solar array to provide power to the wells, are also proposed.
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Santos has committed 100 per cent of Narrabri gas to the east coast domestic market helping bring energy security to the region. Santos is proposing to deliver this gas via two pipelines – the Narrabri Lateral Pipeline (NLP) and the Hunter Gas Pipeline (HGP) which, once constructed, will tie-into the existing gas transmission network near Newcastle.
Santos acquired the Hunter Gas Pipeline in August 2022 and it was declared Critical State Significant Infrastructure by the NSW Government. For more information on the pipelines visit http://www.huntergaspipeline.com.au.
Santos is committed to developing its NSW projects safely and sustainably. The Environmental Impact Statement for the NGP was assessed by both the Federal and State Governments, with extensive community consultation throughout the assessment process.
The Pilliga State Forest spans over 500,000 hectares, while the Narrabri Gas Project is planned across approximately 1000 hectares, meaning the project footprint represents less than one per cent of the total forest area. The Project area is mostly located on state land in a section of the Pilliga set aside by the NSW Government for uses including logging and extractive industries. The Project area does not include areas of National Park or Nature Reserves. The Project area also does not contain land mapped by the Government as Biophysical Strategic Agricultural Land (BSAL).
For more information on the Environmental Impact Statement for the Narrabri Gas Project see here.
For more detail on the Project:
About
Exploration
PEL 1
In accordance with the requirements of the Environmental Planning and Assessment Act 1979 and the Environmental Planning and Assessment Regulation 2021, on 12 September 2022, Santos lodged with the NSW Resources Regulator an application to conduct exploration activities for assessable prospecting operations, PEL 1 – seismic survey including a Guideline Review of Environmental Factors. The NSW Resources Regulator granted the activity approval on 31 October 2022.
Seismic Survey
In January 2023, Santos conducted a seismic survey in a small area to the southwest of Gunnedah to gain a better understanding of the subsurface geology of this area. This activity was approved by the NSW Government and is part of our exploration activity in petroleum exploration licence (PEL) 1, which the government renewed in 2022.
Seismic surveying is the most effective, low impact method to gain a better understanding of the subsurface geology of the area.
Kahlua area activities
Santos is conducting exploration and appraisal activities in the Kahlua area within PEL 1, approximately 20km west of Gunnedah. Approval to restart the four existing pilot wells was approved by the NSW Resources Regulator in March 2023. The civil construction works commenced in Q4 2023 and dewatering of the pilot wells commenced in February 2024. Santos is seeking approval from the NSW Government to operate for a further two years to ensure that the data required to fully assess resource potential is obtained. Minor civil and construction works, including the installation of a small solar array to provide power to the wells, as well as work over activities as required are proposed.
Activity Approval of Assessable Prospecting Operations – PEL 1 Kahlua Pilot Reactivation
In accordance with the requirements of the Environmental Planning and Assessment Act 1979 and the Environmental Planning and Assessment Regulation 2021, on 12 January 2023, Santos lodged with the NSW Resources Regulator an application to conduct exploration activities for assessable prospecting operations, PEL 1 – Kahlua Pilot Reactivation including a Guideline Review of Environmental Factors. This application was reviewed and approved by the NSW Resources Regulator.
Historic Activity Approvals
Santos conducted exploration activities within its tenures around the Gunnedah and Upper Hunter areas. The relevant REF documents are set out below.
2007
2008
2009
2010
2011
Environment Protection Licensing
‘Petroleum exploration, assessment and production’ is a scheduled activity listed in Schedule 1 of the Protection of the Environment Operations Act 1997 (POEO Act). Under section 48 of the POEO Act, all scheduled activities are required to hold an environment protection licence.
EPL 20351 covering PEL 1 and PEL 12 in the area around Gunnedah
EPL 20352 covering PEL 456 in the Upper Hunter area.