"With Santos recently purchasing the Hunter Gas Pipeline it has been agreed between APA and Santos to discontinue the development of the Western Slopes Pipeline,' a spokesperson said today. 

 

The Narrabri CSG project in New South Wales can supply up to 70 petajoules of gas per year to the east coast market. Santos has had the project for over a decade and spent up to $1 billion on studies and pre-development but has pushed back sanction as it waits on final environmental approvals. 

 

In August the company bought the Hunter Gas Pipe. It is yet to be built, but all the planning and environmental approvals are in place. 

 

It will run from Wallumbilla in Queensland to Newcastle in New South Wales, passing close to the Narrabri CSG project. 

 

Once built, it will be the second connection between the Wallumbilla gas supply hub in Queensland  to southern markets in NSW and Victoria. 

 

Having a second pipeline to southern domestic markets would "remove occasional supply constraints in existing pipelines", according to Santos midstream president Brett Woods. 

 

Construction begins in 2024. 

 

The company continues to face pushback from activists and ant-fraccing group Lock the Gate, although since gas prices spiked in June across the east coast CEO Kevin Gallagher has been adamant his project can solve the gas crisis. 

 

"Santos' Narrabri Gas Project is 100% committed to the domestic gas market and is a vitally important project to free up Cooper Basin gas for South Australian customers and increase gas supply for east coast customers, particularly in New South Wales," he said last week on the signing of a major gas sales contract to Brickworks. 

 

Appraisal drilling is planned for later this year pending final approvals and Native Title approval.