Page 11 - AsianOil Week 28 2022

AsianOil SOUTHEAST ASIA AsianOil

Worley wins FEED contract for

Santos’ Bayu-Undan CCS project

ENERGY WORLEY has been awarded a front-end engi- pipeline from hydrocarbons to CO2 service,
TRANSITION neering and design (FEED) contract for infra- Worley said. The company added that it would
structure at Santos’ planned Bayu-Undan carbon also provide FEED services for the life extension
capture and storage (CCS) project offshore of the facility and pipeline.
Timor-Leste. The Bayu-Undan CCS project is expected to
Bayu-Undan is a depleted gas and conden- store up to 10mn tonnes per year (tpy) of CO2,
sate field where production is stopping this year. which Worley said is equivalent to 1.5% of Aus-
Santos is proposing to repurpose the existing tralia’s annual CO2 emissions.
facilities at the field and use the reservoir for Barossa contains gas that is comparatively
storing carbon dioxide (CO2) from the Barossa high in CO2 compared with other projects in
Santos wants to gas project offshore neighbouring Australia, the region. Output from the project will be used
repurpose Bayu-Undan among other Australian projects. Developing a to feed the Darwin LNG export terminal. Santos
as a CCS storage site. CCS project in Timor-Leste will not only help is aiming to bring Barossa online in 2025, and
Santos make use of existing infrastructure but is expects the Bayu-Undan CCS project to also be
also thought to be cheaper than building a simi- ready to enter service by the time the field starts
lar project in Australia itself. up.
According to a July 12 filing with the Aus- The award of the contract comes after San-
tralian Securities Exchange (ASX), the contract tos said recently that it had entered the FEED
awarded to Worley covers FEED services for the phase of developing Bayu-Undan CCS. The
Bayu-Undan offshore facilities and pipeline. This FEED work also includes engineering and
includes the re-purposing of the Bayu-Undan design for additional CO2 processing capacity
facility and the offshore section of the gas export at Darwin LNG.™

EAST ASIA

Japan considers steps to

conserve gas supplies

POLICY JAPAN is considering steps to conserve natural off Japanese access to Russian oil and gas.
gas supplies amid fears of a potential disruption. This week the Japanese Ministry of Econ-
This week it emerged that Tokyo may ask house- omy, Trade and Industry (METI) called for a
holds and businesses to cut back on gas usage discussion on creating a framework that would
when supply is tight. allow the government to ask households and
This comes after Moscow ordered the trans- businesses to conserve gas when necessary.
fer of ownership in the Sakhalin-2 oil and LNG According to a document released on July 11,
project to a newly established Russian company the government believes that despite long-term
and warned Japanese firms Mitsui & Co. and LNG contracts helping Japan to secure stable
Mitsubishi, which own stakes in the project, that supply, rising competition means conservation
they could lose their access to it. measures will be necessary if energy procure-
Mitsui holds a 12.5% stake in Sakhalin-2, ment is disrupted.
while Mitsubishi owns 10%. Tokyo has previ- The document said the government would
ously said that Japanese companies would not first ask households and businesses to cut
give up their stakes in the project given the back on gas usage to the best of their abili-
country’s high level of dependence on energy ties. If this proves insufficient to avoid sup-
imports and worries over whose hands those ply shortages, then stricter targets could be
stakes could end up in. However, the Group brought in.
of Seven (G7) countries – which include Japan Tokyo is already asking Japan’s population to
– agreed at the end of June to explore ways of play a part in power conservation, as electricity
capping prices for Russian oil, and Moscow is supply is also expected to be tight over the com-
pushing back, including by threatening to cut ing months.™

Week 28 15•July•2022 www. NEWSBASE .com P11