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FIVE at FIVE AU: ASX slightly up thanks to energy stocks as Santos chalks up gas pipeline win

Published 15/01/2024, 04:02 pm
© Reuters FIVE at FIVE AU: ASX slightly up thanks to energy stocks as Santos chalks up gas pipeline win
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The Australian share market is up 3.10 points today to 7,501.40.

Top-performing stocks were Boss Energy Ltd and Paladin Energy (ASX:PDN) Ltd, reflecting the energy sector’s good run, up 9.23% and 7.88% respectively.

Over the last five days, the index is virtually unchanged but is currently 1.72% below its 52-week high.

The index has lost 0.62% for the last five days but is virtually unchanged over the last year to date.

As we’ve seen, the woes of the other sectors didn’t seem to afflict Energy stocks, which were up 2.21%, or Communications Services, up 1.17%, but everything else hovered around even, with Materials (-0.78%) and Health Care (-0.64%) creating the biggest lag after lunch.

Santos to resume pipeline construction

In business news that is bound to whet the appetite of the commodities markets, Australian gas giant Santos has had a victory in the Federal Court, which has granted it permission to resume the construction of an underwater pipeline for its A$5.7 billion Barossa Gas Project in the Timor Sea, north of Darwin.

This development follows a legal challenge from a group of Tiwi Islands elders, who had raised concerns about the project's potential impact on underwater sacred sites. The court's decision allows Santos to continue with its plans for laying the pipeline, which is a significant component of the Barossa project.

In November last year, Santos was compelled to pause its pipeline construction after the Tiwi Islands elders, represented by the Environmental Defenders Office, sought an urgent injunction.

The elders argued that the company's environmental assessment failed to adequately address the potential damage to underwater cultural heritage sites and sacred dreaming places located near the pipeline's proposed route, about seven kilometres west of the Tiwi Islands.

The recent court ruling permits Santos to proceed with the pipeline construction, intended to transport gas to Darwin for export as Liquefied Natural Gas (LNG) to South Korea and Japan. Additionally, the court has ordered the applicants to bear Santos' legal costs.

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