Santos is aiming to start construction of the pipeline in 2024 subject to remaining approvals. However, it still needs to overcome potential hurdles from local landholders and councils that may be opposed to the project.

Credit Suisse analyst Saul Kavonic said the Hunter Gas Pipeline “makes the most sense” for the gas network, and could resolve infrastructure constraints on the east coast, but would likely run into significant environmental and land-access opposition

“In a world unconstrained by social licence and political considerations, the Hunter Gas Pipeline would be built every time,” Kavonic said. “But there are still lots of social licence matters to get through first.”

The Narrabri coal-seam gas project in northern NSW, which could supply half of the state’s gas needs, has been at the front line of a years-long struggle between the gas industry and Australians worried about the impact of drilling on the environment and the climate. Santos has spent $1.5 billion and faced years of delays to approve the project amid thousands of objections over its feared impacts to the Pilliga state forest and contribution to global warming.

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