NO matter how you slice it, Narrabri coal seam gas project has more in common with an onion than the sweet deal Santos was hoping for when it spent $924 million on a takeover of Eastern Star Gas in 2011.
Six years later and still any amount of peeling reveals another layer of complexity for the Pilliga Forest project.
Along the way there’s been a uranium scare, ongoing protests, counterclaims from the community and even some sabotage.
Last week, Santos advised the stock market it had submitted its Environmental Impact Statement (EIS) and kicked off the final planning approval process for CSG in and around the Pilliga.
This prompted widespread speculation that rather than advancing the project, Santos was ramping up its search for a buyer for the beleaguered venture, which has had its value written down by more than $1 billion. But Santos points to plans for a pipeline and the positive impacts it project would have on domestic gas supplies.
Santos Narrabri CSG timeline
When it has reviewed the approvals documents, NSW Planning will likely release the EIS within a couple of weeks, which will no doubt prompt a fresh wave of opposition from environmental and local opponents.
But Santos is not without its backers. The local Yes2Gas group, which formed to highlight support from the local community. And last week Malcolm Turnbull said state government should work to “enable desperately-needed sustainable onshore gas development” to combat rising electricity prices.
Critics of the industry counter that onshore gas development won’t work to drop the prices in a market which is now set by the offshore market.
And that’s not to mention NSW, where AGL pulled of its gas project at Gloucester, while Metgasco was bought out by State Government for $25 million.
Against the federal government’s wishes, NSW bought back its CSG tenements (except for Santos’), while at the same time it legislated a crackdown on protesters.
If Santos does proceed, it will need to sink wells on farmland around Narrabri – but the company has committed to never use the law to force its way against landowners’ wishes.
So whichever way you cut into it, the complex debate around the Narrabri project looks set to roll on.