Santos
(ASX:STO) has announced entry into the front-end engineering and design (FEED) phase for the proposed Bayu-Undan carbon capture and storage (CCS) project.
The energy giant said the project could permanently 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. It also said the project is critical in helping the world meet its climate goals.
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.
The project requires necessary agreements between the two companies and governments of Timor-Leste and Australia.
“Located in Timor-Leste with potential CO2 sources from Australian gas projects and other industries in the Northern Territory, Bayu-Undan CCS could be the start of a valuable new carbon services industry for Timor-Leste,” said chief executive officer Kevin Gallagher.
“It would create new jobs and a new revenue stream for the nation once gas production from Bayu-Undan ceases.”
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(ASX:STO) are trading 0.3 per cent lower at $7.84.
