Page 11 - AsianOil Week 35 2022

AsianOil OCEANIA AsianOil

Source: Santos.

Santos takes FID on Darwin Pipeline

Duplication Project

ENERGY AUSTRALIA’S Santos Ltd has taken a final potential to capture and store up to 10mn
TRANSITION investment decision (FID) to proceed with tonnes of carbon dioxide per annum, equiva-
the Darwin Pipeline Duplication Project. The lent to about 1.5% of Australia’s carbon emis-
Barossa will be used scheme will extend the Barossa gas export pipe- sions each year from other projects, customers
to prolong the life of line to the Darwin LNG facility and allow for and other hard-to-abate industries, and has the
Darwin LNG after the repurposing of the Bayu-Undan to Darwin potential to be the largest CCS project in the
the Bayu-Undan field pipeline that currently carries natural gas from world,” Gallagher said.
reaches depletion. offshore Timor-Leste to the Santos-operated Santos has expressed its commitment to net-
LNG plant. zero emissions for its operations before 2050.
The project is due to get underway in 2023 In February this year, Santos announced that
at a cost of $311mn and begin to deliver natural it had booked carbon dioxide storage in the
gas from the offshore Barossa field during the depleted gas reservoirs of the Cooper Basin in
first half of 2025. The Bayu-Undan, which has South Australia. The storage resource will hold
been producing oil and gas for the island nation 100mn tonnes of CO2 and serve the Moomba
since 2006, is expected to expire in 2023. For that CCS project. Santos and partner Beach Energy
reason, Timor-Leste is keen to use the field for plan to capture 1.7mn tonnes per year (tpy) of
carbon dioxide storage to maintain a revenue CO2, beginning in 2024.
stream. The new pipeline duplication project would
Kevin Gallagher, CEO and managing direc- see CO2 being stripped out of the Barossa gas
tor of Santos, said in a statement that the FID at the Darwin LNG plant and then transported
would promote sustainable development and through a new 120-km pipeline that would link
create jobs in Australia’s Northern Territory and with the existing Bayu-Undan pipeline and move
Timor-Leste while building momentum for a the CO2 another 380 km to the Bayu-Undan res-
carbon deduction solution for the entire region. ervoir. A FID for the Bayu-Undan CCS project is
The pipeline project will allow Barossa to expected in 2023.
be carbon capture and storage (CCS) ready, Santos’ partners in the Barossa project are
he said. “The Bayu-Undan project has the South Korea’s SK E&S and Japan’s JERA. ™

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