Santos kicks off Bayu-Undan CCS FEED

Australian LNG player Santos said it has entered into the front-end engineering and design phase for the proposed Bayu-Undan carbon capture and storage (CCS) project.

Santos is the operator of the Bayu-Undan offshore gas production facility in Timor-Leste as well as the Darwin LNG plant.

Santos says the Bayu-Undan CCS project could potentially permanently store up to 10 million tonnes of carbon dioxide per annum, equivalent to about 1.5 percent of Australia’s carbon emissions each year.

Also, the project has the potential to be the largest CCS project in the world and one of the many that would be “critical to help the world meet its climate goals,” the firm said in a statement on Wednesday.

The Bayu-Undan FEED work will include engineering and design for additional CO2 processing capacity at Darwin LNG plus repurposing of the Bayu-Undan facilities for carbon sequestration operations after gas production ceases.

“Santos is working closely with the Timor-Leste regulator, ANPM, towards the necessary agreements and regulatory framework that will be required for the Bayu-Undan CCS project,” the firm said.

Moreover, the project would also need agreements between the governments of Timor-Leste and Australia, and some Australian regulatory arrangements, it said.

FID in 2023

Santos is targeting a final investment decision on Bayu-Undan CCS for 2023, subject to relevant regulatory frameworks and agreements.

CEO Kevin Gallagher said taking FEED builds on the growing momentum for the regional carbon reduction project.

Furthermore, he said entry into the FEED phase has “strong support” from its five joint venture partners headquartered in Japan, Korea and Italy

“And last month, a meeting of the Timor-Leste and Australian Prime Ministers included a commitment by Australia to establish an LNG Partnership Fund to deepen links between Australia and Timor-Leste in gas development and trade, including in the use of carbon capture and storage,” Gallagher said.

Santos has a 43.4 percent operated interest in Bayu-Undan and Darwin LNG. Other partners include SK E&S (25 percent), Inpex (11.4 percent), Eni (11 percent), Jera (6.1 percent) and Tokyo Gas (3.1 percent).

- Advertisements -

Most Popular

Golden Pass LNG contractor Zachry files for bankruptcy

US construction company Zachry said on Tuesday it has filed for bankruptcy, initiating a structured exit from the Golden...

Kinder Morgan secures more time for Gulf LNG export project

US energy company Kinder Morgan and its partners have secured more time from the US FERC to add liquefaction...

Hoegh LNG: commissioning of Brazilian FSRU completed

Commissioning of the FSRU Hoegh Giant which serves Cosan's LNG import terminal in Brazil's port of Santos has been...

More News Like This

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...

TotalEnergies pushes back Papua LNG FID to 2025

French energy giant TotalEnergies and its partners have postponed a final investment decision on the planned Papua LNG export...