The Santos Ltd (ASX: STO) share price is in a trading halt after gaining a key approval for a major gas project.
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What's the latest update?
The New South Wales Independent Planning Commission (IPC) has given Santos the green light for its controversial Narrabri Gas Project.
While activists have indicated further appeals may be on the way, Santos said it "accepts the conditions proposed by the IPC".
The Aussie energy group will now work with the Federal Government to gain Environmental Protection and Biodiversity Conservation (EPBC) Act approval.
Santos estimates the project has the potential to meet up to half of NSW's natural gas demand.
The approval is good news for the Santos share price which remains in a trading halt following the news.
Where is the Santos share price headed?
The Aussie energy share is one to watch when it returns to the boards given the good news of the approval but bad news for oil prices.
ASX oil stocks have been smashed this morning as oil prices continue to plummet. Increasing coronavirus cases in Europe and around the globe have prompted fears of further shutdowns.
That's bad news for industries like manufacturing and travel, which are traditionally high energy consumers.
The Woodside Petroleum Limited (ASX: WPL) share price has fallen 2.5% lower this morning while Oil Search Limited (ASX: OSH) shares are down 2.3%. That means the Santos share price could be tracking them lower when it returns to the boards this week.
The Narrabri approval does represent a big stride forward for Santos. The company is now well-positioned to take a significant stake in the NSW gas market.
Foolish takeaway
The Santos share price will be one to watch when it recommences trading on the ASX.
Investors will be weighing up the importance of the Narrabri Gas Project approval against the broader weakness in ASX oil shares.
