SYDNEY, Feb. 1 (Xinhua) -- Australian oil and gas giant Santos has begun the process of gaining government approval for their Narrabri coal seam gas project in the Australian state of New South Wales, the company announced Wednesday.
The project could potentially supply up to 50 percent of the state's gas needs, and aims to be connected to the supply line via the existing Moomba to Sydney pipeline.
Kevin Gallagher, chief executive and managing director of Santos, said the company has engaged in thorough environmental studies to ensure the affected environment will be protected according to relevant standards.
Gallagher also stressed the project's importance to the local economy, with 1,300 jobs created during the construction phase, along with 200 locally based ongoing jobs upon completion.
"The Narrabri Gas Project has the potential to play a significant role in the domestic energy space." Gallagher said.
The project is expected to generate over 1.2 billion Australian dollars (907 million U.S. dollars) in royalties for New South Wales, along with 120 million Australian dollars earmarked for social programs and initiatives in nearby communities.
But the proposed project has caused outrage among environmental groups, and activists, with prominent New South Wales Greens Party energy spokesman Jeremy Buckingham, lashing out and calling for the government to block the proposal.
"The news that Santos has lodged their EIS (Environmental Impact Statement) will reignite a massive battle in New South Wales over coal seam gas, which the farmers and community will win," Buckingham said.
Buckingham also drew attention to Santos' plans to sell off the project, and said they already have it set up as a separate entity.
"The government should not allow Santos to jerk people around, waste their time and create uncertainty just to fatten up the project for the stock market," Buckingham said.
Santos said they have conducted over "13,000 hours of on ground environmental surveys," in order to ensure the project would not harm the environment.
