GAS giant Santos has a memoranda of understanding with two companies to supply them with gas, should the company's Narrabri Gas Project get the green tick.
Under the proposed deal, Santos would supply Brickworks with natural gas year for seven years from 2025, while providing Weston Energy with gas for a decade 2023.
Santos chief executive officer Kevin Gallagher said manufacturers on the east coast were crying out for more gas supply and more competition which would put downward pressure on gas prices.
"We have committed 100 percent of Narrabri gas to the domestic market, enough to supply up to half of NSW's needs and help support about 300,000 jobs in NSW that rely on natural gas," Mr Gallagher said.
"In Sydney and throughout regional NSW, customers understand the benefits of a local, reliable, competitively-priced natural gas supply just a few hundred kilometres away in Narrabri.
"Gas from Narrabri will always be cheaper than gas imported from other states or from overseas.
"Santos has spent more than $500 million on the Narrabri Gas Project since acquiring Eastern Star in 2011. We've applied the best science to our environmental impact assessment and the NSW Government has put strong environmental regulation in place."
Weston Energy CEO Garbis Simonian said the MoU was an important step towards a better energy future for NSW.
"This agreement provides a simple pathway for new sources of gas to readily supply NSW businesses," he said.