Santos has today announced it received its licences to carry out study and appraisal work for the possible storage of carbon dioxide in the offshore Carnarvon and Bonaparte Basin, off the coast of Western Australia (WA).
In a statement, Santos said the G-9-AP and G-11-AP permits would allow the company to pursue potential carbon capture and storage (CCS) opportunities with its joint venture partners.
Santos Managing Director and Chief Executive Officer Kevin Gallagher stated that the permits build on the company’s CCS strategy and have the potential to lead the way for additional CCS opportunities.
Gallagher highlighted the importance of carbon capture and storage in reducing global emissions. He added it is in line with Santos’ net-zero scope 1 and 2 equity-share emissions by target, hence, the company’s commitment to looking at all options for CCS capabilities.
“Santos is working towards developing its three hub CCS strategy across our operating footprint in Australia and Timor-Leste, and the award of these permits represents further demonstration of our commitment to that strategy,” he said.
According to him, the permit for the Carnavon Basin creates a potential new acreage for CCS beyond the Reindeer fields.
“This is particularly significant as our plans for a WA CCS hub at Reindeer and Devil Creek develop,” he added.
Moreover, Gallagher said the other permit is significant in size as it covers over 26,000 square kilometres in the Bonaparte Basin.
“Its proximity to our Bayu-Undan CCS project, which has the potential to be one of the largest CCS projects in the world, is important as we look to build our Northern Australia and Timor-Leste CCS hub,” he stated.
Gallagher added that Santos has the technology, infrastructure, and knowledge to deliver low-cost CCS competitively on a global scale.
“We know a large scale-up of CCS is required to meet the world’s climate objectives. Working with our partners to assess the storage potential in these permit areas will provide us with a greater understanding of the geology and inform us of the possible storage opportunities,” he said.
According to Santos, the company’s first CCS project at Moomba, which will be among the largest in the world, paves the way for a huge carbon reduction and storage story for Santos and Australia. With 100 million tonnes of CO2 capacity-dependent resources already reserved, the project is 20 per cent finished.
