Santos has signed agreements with four potential customers for CO₂ storage at the Bayu-Undan carbon capture and storage (CCS) project offshore Timor-Leste.
The Australian energy company has executed the deals with potential upstream gas and liquefied natural gas projects offshore the Northern Territory and in Darwin, and a South Korean energy and industrial conglomerate.
The agreements indicate that the demand for CO₂ storage at Bayu-Undan CCS could well be over ten million tonnes per year.
Santos managing director and CEO Kevin Gallagher said: “Increased deployment of CCS is critical to achieve the world’s climate goals and executing these MoUs demonstrates the strong underlying demand for CCS and the broad acceptance of CCS as a decarbonisation strategy.
“With CO₂ transport and storage demand only likely to grow, we will continue to work with the Timor-Leste and Australian Governments to urgently progress the necessary regulatory and fiscal frameworks and approvals required to support the development of Bayu-Undan CCS.”
The Bayu-Undan CCS project is situated within Santos’ Darwin and Bayu-Undan Hub, which is part of the company’s three-hub CCS strategy.
The strategy includes the under-construction Moomba CCS project, which is 60% complete. First injection at Moomba CCS is due to take place in 2024.
Bayu-Undan CCS will be offering permanent CO₂ storage in depleted gas reservoirs. The Australian energy company is expected to make a final investment decision on Bayu-Undan CCS in 2025.