Santos signs off on developing Australian Moomba CCS project

Australian LNG exporter Santos has made its final investment decision on the Moomba carbon capture and storage project with first injections targeted for 2024, the company said Nov. 1.

"This carbon reduction project in the South Australian outback will be one of the biggest and lowest cost in the world and will safely and permanently store 1.7 million mt of carbon dioxide per year in the same reservoirs that held oil and gas in place for tens of millions of years," Santos managing director and CEO Kevin Gallagher said.

The project, which is a joint venture with Beach Energy, has a price tag of $165 million.

"We forecast a full lifecycle cost of less than $24/mt of CO2 including cash costs in operation of $6-8 per tonne of CO2," Gallagher said.

The project is part of Santos' plan to cut scope 1 and 2 emissions to net-zero by 2040.

"If we do not decarbonize the hydrocarbon fuels that still make up just over 80% of global primary energy and provide 60% of the world's clothing fibres along with other essential everyday products, then the world will simply not reach net-zero by 2050," Gallagher said.

Santos is also working with the Timor-Leste government on the possibility of using the soon-to-be-depleted Bayu-Undan Darwin LNG backfill project for CCS.

Santos said Sept. 14 that it has the potential to store around 10 million mt/year of CO2.

The company is planning to merge with fellow Australian Securities Exchange-listed company Oil Search, which would create a top 20 oil and gas entity.