Page 12 - AsianOil Week 06 2022

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Inpex unveils plans for Ichthys CCS project

ENERGY JAPAN’S Inpex has unveiled plans to build liquefaction capacity over the coming years,
TRANSITION a carbon capture and storage (CCS) project raising it to 9.3mn tpy by 2024 and potentially
at its Ichthys LNG terminal in Australia. The further around 2030. This would likely result in
plans, described in Inpex’s long-term strategy increased CO2 emissions as well.
and medium-term business plan, which was The Ichthys facility already has CO2 separa-
unveiled this week, form part of the company’s tion and capture equipment, according to Nik-
push to achieve net zero greenhouse gas (GHG) kei Asia. The newspaper reported that Inpex
emissions by 2050. was in discussions with a number of non-Japa-
According to the plans, Inpex will introduce nese companies that have expertise in CCS and
CCS to Ichthys in the late 2020s. Initially, it will was aiming to enter into a collaboration for the
inject at least 2mn tonnes per year (tpy) of car- project.
bon dioxide (CO2) produced by Ichthys LNG, Inpex said it was planning to invest up to
but ultimately it could be expanded to capture up JPY4.4 trillion ($38bn) into growth areas over
to 7mn tpy of CO2. The company said it wanted the nine years between now and 2030, including
to play a leading role in establishing a CCS hub in up to JPY1 trillion ($8.7bn) into decarbonisation
Darwin, in Australia’s Northern Territory. initiatives including ammonia and hydrogen.
The CCS project is estimated to cost After it establishes its CCS project at Ichthys it
JPY100bn ($865mn) and would be one of the hopes to harness the know-how gained from
world’s largest. developing that scheme and apply it to a future
The Ichthys LNG terminal has the capacity to venture in Japan. CCS is not currently viable in
produce 8.9mn tpy of LNG, and is estimated to Japan as a result of the regulatory environment,
have CO2 emissions of around 7.6mn tpy. How- though Inpex appears hopeful that this will
ever, Inpex is planning to expand the project’s change in the future.™

Australia’s Santos announces

booking of CO2 storage capacity

ENERGY SANTOS on February 8 announced the book- Managing Director and CEO Kevin Gal-
TRANSITION ing of carbon dioxide storage in depleted gas lagher said the CO2 storage resource is a sig-
reservoirs in the Cooper Basin in South Aus- nificant step in the company’s decarbonisation
tralia. The company said securing the network pathway and carbon storage hub strategy. “CCS
of reservoirs in the north-eastern corner of the is a critical technology to achieve the world’s
state was a “world-first” in accordance with the emission reduction goals and we only have to
CO2 Storage Resource Management System look at current carbon prices to see how valu-
(SRMS) sponsored by the Society of Petroleum able 100mn tonnes of storage is,” he said in the
Engineers. reserves statement.
The announcement comes with the compa- “Santos sees CO2 storage capacity as a stra-
ny’s annual reserves statement, which reported tegic competitive advantage in evolving cleaner
that proven plus probable reserves rose 80% to energy, clean fuels and carbon markets,” Gal-
1,676mn barrels of oil equivalent (boe) at end- lagher said. “This globally significant carbon
2021. It attributed the increase to the final invest- storage capacity booking is another tangible
ment decision (FID) on the Barossa project and example of Santos leading the way in estab-
the merger with Oil Search. lishing the foundations to support the energy
Santos said the storage resource would hold transition.”
100mn tonnes of CO2 and would serve the CCS is being promoted by the hydrocarbon
Moomba carbon capture and storage (CCS) industry as a viable means to continue oil and
project, which in partnership with Beach Energy gas producing and processing amid mounting
intends to capture 1.7mn tonnes per year (tpy) calls for environmental action to phase out oil
from an existing gas plant. The first injection of and gas and speed up the energy transition to
CO2 into the facility is planned for 2024. net-zero emissions. CCS remains an expensive
The company speculates that it could earn up and unproven technology and its viability will
to $25mn a year from carbon credits. likely not become clear until later this decade.™

P12 www. NEWSBASE .com Week 06 11•February•2022