Santos, Beach secure additional carbon storage acreage in South Australia
SUMMARY
This additional acreage is located near Santos' flagship Moomba CCS project, which is on track to commence operations next year.
By Shardul SharmaSantos and its joint venture partner Beach Energy have expanded their carbon capture and storage (CCS) footprint by securing additional carbon storage acreage near Moomba in South Australia, Santos said on November 13.
The licence, granted under the South Australian Petroleum and Geothermal Energy Act by the South Australia Department for Energy and Mining, authorises the joint venture to conduct activities to assess the nature and extent of natural reservoirs, test their suitability for CO2 storage, and establish the commercial feasibility of CO2 storage and storage techniques.
This additional acreage is located near Santos' flagship Moomba CCS project, which is on track to commence operations next year. With the capacity to safely store up to 1.7mn tonnes/year of CO2 in previously used oil and gas reservoirs, the Moomba CCS project represents a significant step forward in Australia's decarbonisation efforts.
Santos has already secured 100mn tonnes of carbon storage resources in the Cooper basin in South Australia, and further evaluations are underway to determine the carbon storage resource volumes associated with this new acreage, it said.
Santos Managing Director and CEO Kevin Gallagher said the new Licence area could enable cost-effective carbon capture and storage beyond the initial phase of Moomba CCS phase for decades to come.
“This is a potential opportunity for low-cost abatement of emissions for nearby customers in hard-to-abate sectors such as steel, cement and metals manufacturing. Our customers in Asia are also looking to CCS in Australia to help their economies decarbonise,” Gallagher said.
Beach Energy interim CEO Bruce Clement said that natural gas paired with CCS will help Australia to achieve its emissions reduction objectives, while providing a reliable and affordable source of energy.
“For Beach, Moomba CCS will abate a significant proportion of our company’s emissions, and the future opportunities for third party CO2 abatement are very exciting,” Clement said.
The acquisition of this additional carbon storage acreage reinforces the commitment of Santos and Beach Energy to CCS as a critical technology for decarbonizing Australia's energy sector and supporting the country's transition to a low-carbon future.
