Santos is doubling down on calls to fast-track the Narrabri and Beetaloo gas projects while issuing a warning to the Albanese government not to meddle with export contracts or face serious consequences.
"Sensible policy settings and regulatory certainty will be critical to ensuring Australia remains an attractive destination for energy investment," a Santos spokesperson said, as the federal election campaign officially kicked off ahead of the May 3 poll.
The Adelaide-based gas producer cautiously welcomed the Coalition's election promise to accelerate approvals for priority gas projects and supported Opposition Leader Peter Dutton's proposed reservation policy to earmark up to 20% of east coast gas for domestic use.
"As outlined by the Opposition, a reservation policy should only be applied to uncontracted gas to provide assurance to our trading partners and avoid increasing the sovereign risk of investing in Australia," the spokesperson said.
Santos has locked in export deals with Japanese customers, but faces a tightening domestic market as existing contracts expire and the Australian Energy Market Operator (AEMO) forecasts supply shortfalls from 2026.
Santos' $3.6 billion Narrabri Gas Project in New South Wales — which could supply up to half the state's gas needs — remains mired in legal challenges, native title disputes, and some community pushback.
Meanwhile, in the Northern Territory's Beetaloo Basin, Santos and Tamboran Resources have upgraded their gas resource estimates and are considering expanding Darwin LNG. However, the highly technical project is still in early stages and depends on federal support to move forward.
What will Labor do?
The Albanese government is yet to unveil an east coast gas reservation policy, but pressure is mounting. While speculation grows that Labor may force uncontracted gas into the domestic market, Santos has highlighted its track record on supply and its capacity to redirect exports.
"Santos has been on the record for many years now in support of a prospective domestic gas reservation policy and has already committed 100% of gas from the Narrabri Gas Project to the domestic market," the spokesperson said.
"Santos has no uncontracted east coast gas."
Santos' logical solution
Santos insists the Narrabri and Beetaloo basins remain a "logical solution" to the looming east coast gas shortfall and should advance without further delay, despite prolonged holdups from environmental approvals, regulatory hurdles and activist opposition.
The company argues that unlocking new supply from the onshore basins would bolster domestic energy security while reinforcing Australia's reliability with Asian LNG buyers amid sustained global demand. Advancing the projects, he says, would also send a clear signal to international investors about Australia's commitment to long-term gas development.
Source: Energy News Bulletin
