Australia’s LNG player Santos said it has signed a memorandum of understanding with South Korea’s SK E&S to develop CCS projects in Australia.
According to a statement on Monday, the two companies plan to support and collaborate in the development of carbon dioxide (CO2) storage facilities together with Korean CCUS Association, Australia’s CO2CRC, and Korea Trade Insurance Corporation.
Under the deal, the partners agreed to jointly develop carbon capture and storage (CCS) projects in Australia and the region, including Bayu-Undan in Timor Leste.
Kevin Gallagher, managing director and CEO of Santos, said the agreement opens the potential for broader bilateral partnership and cooperation on CCS between Australia and Korea.
Last year Santos said it had signed a memorandum of understanding to progress carbon capture and storage (CCS) at the Bayu-Undan field with Timor-Leste regulator Autoridade Nacional do Petróleo e Minerais (ANPM).
Gallagher said that CCS at Bayu-Undan would have the potential capacity to safely and permanently store about 10 million tonnes of carbon dioxide per annum.
According to Gallagher, the firm believes the Bayu-Undan reservoir and facilities have the potential to be “a world-leading CCS project.”
Santos has a 43.4 percent operating interest in Bayu-Undan, while SK E&S holds 25 percent.
Other partners include Inpex with 11.4 percent, Eni with 11 percent, and Tokyo Timor Sea Resources with 9.2 percent.