Dramatic write-down: time to mothball the Narrabri gas project

Published: February 12, 2015

Farmers from the Narrabri district are calling for Santos to formally shelve their controversial Narrabri Gas Project following news the company has dramatically written down its value.

Santos have today announced an $808 million write down in the value of the Narrabri Gas Project, acquired with the purchase of Eastern Star Gas for $924 million four years ago. The company has cited later start up and lower reserves as the reason for the write-down, but it has also been subject to sustained community opposition.

Local farmer Sarah Ciesiolka said, “This project is no longer worth very much to Santos, but the groundwater it will put at risk is priceless for the farming communities of North West New South Wales, so it is time to do the basic maths and shut the project down altogether.

"Coal seam gas is a failed experiment in New South Wales. We’ve known for years that there are terrible environmental risks and damage, and now even the economics of it have been exposed to be utterly failed.

"The communities of North West New South Wales have rejected this project, and after today’s announcement it is dead in the water. Santos should give the affected community the certainty of formally exiting the North West and the State Government should do likewise by cancelling their Petroleum Exploration Licence."

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