Page 7 - GLNG Week 11 2022

GLNG COMMENTARY GLNG

The CCS project at
Gorgon LNG has failed
to meet its carbon
capture targets thus far.

The legislation will be known as the Green- Santos said it had kicked off the front-end
house Gas Storage and Transport Bill and it will engineering and design (FEED) phase of its
be targeted at the state’s mining, natural gas and Bayu-Undan CCS project. While this venture
LNG industries in particular. will be located in Timor-Leste waters, it is antic-
“This is an important step for the develop- ipated to serve the Darwin LNG project in Aus-
ment of the CCS market in Western Australia tralia’s Northern Territory, as the Bayu-Undan
and will be critical to assist the oil and gas opera- gas field does currently.
tors in the market to effectively implement CCS Japan’s Inpex also recently unveiled plans to
technology to decarbonise their operations,” build a CCS facility near Darwin to serve its
commented George Varma, a hydrogen expert Ichthys LNG project. And Woodside Energy
at law firm Pinsent Masons, this week. is exploring the feasibility of a multi-user CCS
The Australian Petroleum Production & project near Karratha, Western Australia,
Exploration Association (APPEA) has wel- together with BP and Japan Australia LNG – a
comed the bill as a positive development for the joint venture between Mitsubishi and Mitsui &
state. Co., also known as MIMI. More participants
“With [Western Australia] home to most of Chevron already operates a large-scale CCS
the oil and gas activities in Australia, CCS is a project in Western Australia at the Gorgon in the CCS
key tool in our decarbonisation toolkit to reduce LNG terminal. However, that project was beset industry will
emissions,” stated APPEA’s director for Western by delays during construction, and has failed to
Australia, Claire Wilkinson. meet its carbon capture targets to date. Gorgon help to improve
Western Australia’s government has said it is Australia’s only working CCS project cur-
will consult with the industry and the public on rently, and while this is set to change, its per- technology and
any proposed legislative changes before the new formance points to the considerable challenges
bill is finalised. facing the nascent carbon capture industry. bring down costs.
“This consultation process will be extremely Chevron Australia’s managing director, Mark
helpful to ensure that the legislative framework Hatfield, told Upstream this week that the Gor-
not only achieves the objective of decarbonis- gon CCS project is providing his company with
ing the industry but is also fit for purpose from “key learnings, which we continue to share with
a practical perspective and is legislation that industry and government to assist in the devel-
assists the industry to implement CCS technol- opment of this critical emissions-reduction
ogies,” Varma said. technology”.
More participants in the CCS industry will
Industry initiatives help to improve technology and bring down
This comes as members of the country’s oil and costs. There is still a long way to go, though, and
gas industry advance their own CCS plans, in considerable uncertainty over how challenging
Western Australia and elsewhere. This week, the path will prove to be.™

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