The logo of Australian oil and gas producer Santos Ltd is pictured at its office in Sydney February 15, 2016. REUTERS/Jason Reed

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Aug 11 (Reuters) – Australia’s Santos Ltd (STO.AX) said it had acquired Hunter Gas Pipeline, which has an approved underground pipeline to transport gas from its Narrabri project in New South Wales to the domestic market in a context of supply shortages and rising electricity prices.

A gas and coal supply crisis has worsened following the Russian-Ukrainian conflict as well as outages at Australia’s coal-fired power plants have pushed up electricity and gas prices, leading to a spike the costs of electricity producers and causing an electricity crisis. Read more

Earlier this month, the country’s competition watchdog – the Australian Competition and Consumer Commission (ACCC) – recommended restrictions on exports of liquefied natural gas (LNG), which the government currently reviewing. Read more

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“At a time when the ACCC predicts domestic gas shortages, our Narrabri project … will inject new supplies into southern domestic markets and put downward pressure on gas prices for New Wales businesses. South,” said Brett Woods, president of Santos Midstream and Clean Fuels. in a statement Thursday. (https://bit.ly/3bHJIed)

“Once fully operational, Narrabri has the potential to meet more than half of New South Wales’ gas demand.”

The Hunter pipeline already has planning approval and will potentially link the Wallumbilla gas supply hub in Queensland to NSW, Santos added.

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Reporting by Sameer Manekar in Bengaluru; Editing by Rashmi Aich

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