SK E&S, KEXIM and Santos have been contacted for remark however didn’t reply.
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The power big ploughed forward with laying the pipe following the choice in January after spending $US10 million ($15.7 million) a month to rent a drilling rig idled by an earlier junction.
In an replace to buyers in February, Santos chief govt Kevin Gallagher reported the Barossa gas project was now 67 per cent full and that the primary gas was anticipated within the third quarter of 2025.
Market Forces senior gas campaigner Rachel Deans stated the large 4 Australian banks “must listen to these warning bells and cut ties with Santos” following BNP Paribas and KEXIM’s newest resolution. NAB, Westpac and ANZ declined to remark.
In an announcement, the Commonwealth Bank stated it was dedicated to supporting Australia’s transition to net-zero by 2050.
”Our environmental and social framework and our underlying environmental and social coverage set out our strategy, and we use our sector-level financed emissions targets to steer our portfolio in these sectors over time,” a CBA spokesman stated.
“Decisions on whether we provide financing to a client are based on a range of factors, including credit and other group policy requirements, such as the E&S framework.“
Australia is the largest exporter of gas, and the Albanese government has embraced the commodity as a critical one as the country transitions to net-zero.
Resources Minister Madeleine King last month released the federal government’s future gas strategy, which identifies LNG as a critical part of the energy landscape beyond 2050, and pledges to deliver affordable gas to customers for decades to come. “New sources of gas supply are needed to meet demand during the economy-wide transition,” the technique stated.
In a report revealed earlier this month inspecting the way forward for the Australian gas sector, the Institute for Energy Economics and Financial Analysis questioned the business viability of native gas producers competing in opposition to lower-cost producing nations, resembling Qatar, in a worldwide market. It additionally discovered international LNG markets have been heading in the direction of a provide glut as a consequence of unprecedented will increase in provide from low-cost producers and weak demand development.
The institute’s lead gas analyst, Joshua Runciman, stated BNP Paribas’ resolution to not assist the Barossa gas project adopted its current withdrawal from the proposed Papua LNG project.
“Looking at the numbers, Santos’ Barossa project faces the risk of poor financial returns,” Runciman stated. “The costs of the Barossa project have already escalated and Santos will face additional costs to offset the very high CO2 content of the Barossa field.”
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