Santos is set to supply gas from Narrabri to two major companies, after signing non-binding memoranda of understandings with Brickworks and Weston Energy.
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The latest deals, announced on Thursday, will see Santos supply Brickworks - one of the nation's leading providers of building products - with up to three petajoules of natural gas from Narrabri per year for seven years from 2025, and Weston Energy - a specialist gas retailer and trader - with 10 PJ per year for 10 years, commencing no earlier than 2023.
The supply of Narrabri gas is subject to a final investment decision, negotiation and execution of a definitive gas supply agreement and approvals by each party.
Weston Energy chief executive officer Garbis Simonian said this is an important step towards a better energy future for NSW.
"This agreement provides a simple pathway for new sources of gas to readily supply NSW businesses," he said.
"It will increase competition and security of gas supply for NSW manufacturers and gas users."
Santos also has a non-binding Narrabri gas supply agreement in place with Perdaman for a proposed new fertiliser plant at Narrabri, creating a new local industry.
Santos managing director and chief executive officer Kevin Gallagher said manufacturers on the east coast are crying out for more gas supply and more competition which will put downward pressure on gas prices.
"We have committed 100 per cent of Narrabri gas to the domestic market, enough to supply up to half of NSW's needs and help support about 300,000 jobs in NSW that rely on natural gas," he said.
"In Sydney and throughout regional NSW, customers understand the benefits of a local, reliable, competitively-priced natural gas supply just a few hundred kilometres away in Narrabri.
"Narrabri gas will be very competitively-priced because we will bring to Narrabri the safe, low cost operating model that we have successfully implemented in Queensland.
"Gas from Narrabri will always be cheaper than gas imported from other states or from overseas."
Santos has spent more than $500 million on the Narrabri Gas Project since acquiring Eastern Star in 2011.
"We've applied the best science to our environmental impact assessment and the NSW Government has put strong environmental regulation in place," Mr Gallagher said.
"We have a proven record of developing coal seam gas resources safely and without harm to the environment or water resources, and a development consent decision is now a matter for the NSW Independent Planning Commission."
Santos is on track to supply more than 70 PJ per year of natural gas to the east coast domestic gas market this year, approximately 14 per cent of total demand.
