Page 16 - AsianOil Week 42
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design (FEED) entry for the Pikka Development middle of the decade, had now been deferred for
in Alaska and reduced exploration activities in several years owing to the coronavirus (COVID-
PNG. 19) pandemic.
The company noted that ExxonMobil Oil Search continues to look at cost-cutting
remained in talks with the PNG government initiatives, with Wulff saying: “Further work is
over the delayed three-train expansion of PNG being done on third-party spend, supply chain
LNG. However, it also said an anticipated sup- and operational efficiencies to ensure cost reduc-
ply shortfall in the global LNG market, which tions are sustainable, with a focus on continuous
had previously been projected to emerge by the improvement and performance.”
Santos nears FID on Moomba CCS
PROJECTS & AUSTRALIAN independent Santos has Project, because carbon credits are essential to
COMPANIES begun gearing up for a final investment deci- make it stack up economically with the cost of
sion (FID) on its Moomba carbon capture and abatement still at around A$30 [$21.35] per
storage (CCS) project following a successful tonne,” Gallagher said, noting that at this rate
injection test. the Moomba development would be the world’s
The company said on October 22 that it lowest-cost CCS project.
had pumped around 100 tonnes of carbon “Our aim is to drive these costs lower with
dioxide (CO2) into depleted underground scale and experience, but the first step is to gener-
natural gas reservoirs at the Strzelecki field ate carbon credits to enable initial development.”
in the Cooper Basin as part of the project’s Gallagher said the company was growing
final field trial. production in the Cooper Basin and that, com-
Santos managing director and CEO Kevin bined with the CCS project, Moomba could
Gallagher said the injection test had been car- evolve into a key supplier of clean energy for
ried out earlier this month and that the com- Australia for the next 50 years.
pany was now looking to finalise technical and He said: “Today, CCS projects store around
commercial arrangements in order to have the 40mn tpy of CO2, far short of the more than 2bn
1.7mn tonne per year (tpy) project ready for tonnes of CO2 the IEA forecasts that CCS pro-
an FID by the end of 2020. Santos aims eventu- jects will need to store each year by 2040.”
ally to be able to store up to 20mn tpy of CO2 Gallagher added that Australia enjoyed a
in the Moomba project. natural competitive advantage in CCS, given
“We will need an approved methodology for that it was home to “high-quality, stable geologi-
CCS to be in place with the Clean Energy Regu- cal depleted storage basins” capable of receiving
lator before we take a FID on our Moomba CCS 300mn tpy of CO2 for at least 100 years.
P16 www. NEWSBASE .com Week 42 22•October•2020
