Santos secures commitment for Narrabri gas production for domestic use, entering partnership with ENGIE in Australia
In a significant development, Santos and Paris-listed energy company Engie have agreed on a non-binding memorandum of understanding (MOU) for the supply of natural gas from Santos' Narrabri project in New South Wales. The agreement involves supplying up to 20 petajoules of natural gas per year for at least ten years, all of which is committed to Australia's east coast domestic market [1][2][3][4].
Santos, an Australian energy company, has invested over A$1.5 billion (approximately US$970 million) since acquiring the project in 2011 and has been developing it for more than a decade [1][2][3]. The project, which is entirely committed to the Australian domestic market, is expected to ease energy supply constraints on Australia's east coast [1][2][3].
The deal with Engie is subject to various conditions and has not yet resulted in a final investment decision by Santos. The company's CEO, Kevin Gallagher, noted that Narrabri is expected to be a very competitive domestic gas source, advantaged by its proximity to customers in NSW [1][2][3].
The project has faced numerous challenges, including government moratoriums, scientific reviews, lengthy approvals, legal appeals, and native title processes. Despite these hurdles, the NSW Independent Planning Commission granted approval after rigorous evaluation, including climate impact considerations [2][3].
The details including the start date and pricing for the Narrabri project have yet to be agreed. Pricing details are not publicly disclosed, but gas is expected to be competitive, contributing to easing price pressures on the east coast market [2][3].
Santos and Engie also plan to explore decarbonization activities related to the project, including expanding carbon capture and storage at Santos’s Moomba operations [1][4].
In summary, Santos and Engie have agreed on a non-binding MOU for up to 20 PJ/year of Narrabri gas over at least 10 years, supplying the domestic east coast market. The project has received necessary planning approvals but faces delays due to regulatory, legal, and community factors. No final investment decision or exact start date for full production is publicly confirmed as of August 2025. Pricing details are not publicly disclosed but gas is expected to be competitive. The parties will also collaborate on decarbonization efforts [1][2][3][4].
[1] Santos: https://www.santos.com/ [2] Engie: https://www.engie.com/en [3] Narrabri Gas Project: https://www.narrabrigas.com.au/ [4] Carbon Capture and Storage: https://www.santos.com/sustainability/climate-change/carbon-capture-and-storage/
Santos, an Australian energy company with significant investments in the Narrabri project, aims to provide gas for sports stadiums and industries on the east coast, following the MOU with Engie. The project, anticipated to ease supply constraints, is also planned to include decarbonization activities for a greener energy future.
