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ABC News
ABC News
Business
By Amelia Bernasconi, Elle Rixon and Kristy Reading

Minister sets timeline for IPC determination on Narrabri gas project

The multi-billion-dollar Narrabri Gas Project has divided the community.

The fate of a controversial coal seam gas project in north-west New South Wales will be decided within 12 weeks.

Santos's Narrabri Gas Project has received backing from the Department of Planning, Industry and Environment, recommending its "approval with strict conditions".

After three years of consideration, the department has referred the multi-billion-dollar project to the state's Independent Planning Commission, and Minister Rob Stokes has requested a determination within 12 weeks.

More than 23,000 submissions were made to the department during its assessment.

A public hearing will be held as part of the IPC's deliberations.

Project to meet half of gas demands

Santos is seeking approval to drill 850 coal-seam gas wells across 1,000 hectares south-west of Narrabri.

In its report, the department said up to 200 terajoules of gas would be produced for the domestic gas market each day for at least 20 years, "which is enough to supply up to 50 per cent of NSW's gas demand".

"It is classified as a strategic energy project and has a capital investment value of $3.6 billion and would create 1,300 jobs during construction and 200 jobs during operations."

The department concluded the project "is critical for energy security and reliability in NSW" and could "provide essential gas supplies to the domestic market to address forecast shortfalls from 2024".

It also acknowledged the economic boost of up to $14.5 million to the Narrabri Shire Council.

The department said the project would "not result in any significant impacts on people or the environment" and that "any residual impacts of the project can be reduced to an acceptable level by capping total water extraction to 37.5 gigalitres over the life of the project".

Farmers feel let down, say fight against will continue

But water remains a key concern for many farmers in the region.

Trevor Atkinson's family has a 100-year history of farming just east of Narrabri.

He said he did not believe the science was clear and that even people who stood to benefit from the industry had reservations about the potential damage to groundwater and the environment.

"The science isn't clear — if it was, the project would have been approved years ago," he said.

Mr Atkinson said many farmers were concerned about the long-term impacts of coal-seam gas.

"Only time will tell how safe it is, and unfortunately if we find it isn't safe, the damage will most likely be irreparable."

Community members against the project fear damage to the biodiversity of the nearby Pilliga State Forest and greenhouse gas emissions.

Business chamber wants decision sooner

Narrabri Business Chamber chair Russell Stewart said the latest news was "fantastic".

He said the region was relying on the gas project to help the economy recover after drought and COVID-19.

"It's great for not only Narrabri and district, but also NSW and Australia as a whole," Mr Stewart said.

"It's progress, it's jobs, and the key to healthy growth in the bush is keep your young people and offer opportunities to stay, and here we are — this is a great one.

"The project won't be approved unless the science adds up.

"Our agriculture has, is, always will be our number-one industry, however weather conditions often make that industry unreliable."

Mr Stewart welcomed the 12-week time limit but said he would like to see it reduced.

"This issue has been going on for 12 years."

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