As the operator of the Barossa joint venture, Santos has announced a final investment decision (FID) has been made to move forward with the Darwin Pipeline Duplication Project, located offshore the Northern Territory.
In a statement, Santos said the decision would extend the Barossa Gas Export Pipeline to the Santos-operated Darwin LNG (DLNG) facility and enable the repurposing of the existing Bayu-Undan to Darwin pipeline to facilitate carbon capture and storage (CCS) options.
According to Santos, gas from the Barossa field will replace the current supply from the Bayu-Undan facility in Timor-Leste. First gas production at DLNG using Barossa gas is aimed for the first half of 2025.
Santos Managing Director and Chief Executive Officer Kevin Gallagher said the DLNG Life Extension, Darwin Pipeline Duplication, and Bayu-Undan CCS projects would promote sustainable development and jobs growth in the Northern Territory and Timor-Leste while building momentum for a whole of region carbon reduction solution.
“Taking FID on the Darwin Pipeline Duplication Project will allow for the Barossa project to be CCS ready. The Bayu-Undan CCS project has the potential to capture and store up to 10 million tonnes of carbon dioxide per annum, equivalent to about 1.5 per cent of Australia’s carbon emissions each year from other projects, customers, and other hard abate industries and has the potential to be the largest CCS project in the world,” Gallagher stated.
According to Santos, the Barossa joint venture and the DLNG joint venture partners have agreed to terminate the toll agreement for using the original Bayu-Undan to DLNG pipeline, reducing operating expenses for Barossa.
Work on the Darwin Pipeline Duplication Project will start in 2023, subject to Commonwealth and Northern Territory regulatory approvals.
Meanwhile, a final investment decision on Bayu-Undan CCS is targeted for 2023. Santos said the company continues to work with the Australian and Timor-Leste governments to establish regulatory frameworks to support future CCS operations.
