Santos, Beach to splash $165 million on Moomba CCS project

Australia’s Santos and compatriot Beach Energy have decided to invest $165 million in the Moomba carbon capture and storage (CCS) project in South Australia.

The LNG producer announced the final investment decision on the project on Monday.

Santos also registered the CCS project with the Clean Energy Regulator following a recent move by the Australian government.

The regulator’s CCS method provides a crediting period of 25 years, over which period the project will qualify for Australian Carbon Credit Units for emissions reduction from Moomba CCS, Santos said.

The Moomba CCS project will permanently store 1.7 million tonnes of carbon dioxide (CO2) per year. Also, it will have a capacity for up to 20 million tonnes annually across the Cooper Basin.

Santos claims it would be one of the biggest CCS projects in the world.

“We forecast a full lifecycle cost of less than $24 per tonne of CO2 including cash costs in operation of $6-8 per tonne of CO2, with first injection targeted for 2024,” Santos chief executive Kevin Gallagher, said.

He said this decision “is a critical step” in decarbonizing natural gas on the company’s path to new low-emissions and clean-burning fuels such as hydrogen.

“It is also an important milestone in our plan for Santos to achieve net-zero Scope 1 and 2 emissions by 2040,” he said.

Gallagher said that “Santos is already receiving significant international interest in our CCS and hydrogen plans.”

“Just as Australian LNG is valued in Asian markets without their own energy resources, carbon storage is now valued because many other countries lack the geological storage or land required for nature-based offsets,” he said.

Santos operates the CCS project and has a 66.7 percent interest while Beach Energy holds the rest.

- Advertisements -

Most Popular

BP expects LNG demand to grow up to 40 percent by 2030

UK-based energy giant BP expects global demand for liquefied natural gas (LNG) to rise up to 40 percent by...

Venture Global’s Plaquemines LNG gets OK to introduce gas to GTG

US LNG exporter Venture Global LNG has received approval from US energy regulators to introduce natural gas to the...

Honeywell to buy Air Products’ LNG business for $1.81 billion

US conglomerate Honeywell has agreed to acquire Air Products’ liquefied natural gas (LNG) process technology and equipment business for...

More News Like This

Australia’s Santos seals long-term LNG SPA with Japan’s Hokkaido Gas

Australian LNG player Santos will supply liquefied natural gas to Japan's gas utility Hokkaido Gas under a long-term deal...

Papua New Guinea’s Kumul sells its first spot LNG cargo

Papua New Guinea’s national oil and gas company Kumul Petroleum said it had sold its first spot liquefied natural...

Santos: PNG LNG shipped 27 cargoes in Q1

The ExxonMobil-operated PNG LNG project in Papua New Guinea shipped 27 cargoes of liquefied natural gas in the first...

Santos: Barossa gas project more than 70 percent complete

The Barossa gas project, which will supply feed gas to the Santos-operated Darwin LNG plant, is more than 70...