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Resources Minister Keith Pitt said the Commonwealth - which has the final say on the project - will work with Santos and the NSW government as it progresses.
"The commission's decision confirms that Narrabri gas is in the public interest and will provide new economic and job opportunities, particularly in the regions," he said in a statement.
NSW Premier Gladys Berejiklian says gas is an essential part of energy security into the future, and that the Narrabri project went through a "very robust" independent process.
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