News: STO UPDATE 1-Court allows appeal against native title decision for Santos' Narrabri project

(Updates throughout with details and background from paragraph 2)

March 7 (Reuters) - Australia's Santos Ltd (STO) said on Thursday the Federal court has allowed an appeal against the National Native Title Tribunal's determination regarding certain lease grants of petroleum production at its flagship Narrabri gas project.

The Tribunal in December 2022 permitted Santos to go ahead with the A$3.6 billion project, ruling that the benefits outweighed the concerns of the Gomeroi traditional owners who contended that it would damage their culture, land and waters and contribute to climate change.

"The Court has determined the National Native Title Tribunal erred at law by declining to have regard to evidence on climate impacts that was tendered on behalf of the Gomeroi applicant," Santos said in a statement.

The long-delayed Narrabri coal seam gas project is in New South Wales, Australia's most populous state, which depends on gas from neighbouring states for all of its supply.

Santos said it continued to work through land access, native title, pipeline licensing and remaining environmental approvals processes to get Narrabri and the Hunter Gas Pipeline ready for a final investment decision.