Santos takes FID to modernize Cooper basin infrastructure, advance MCO project
Key Highlights
- The MCO project includes replacing seven gas compressor stations with a single electric-driven compressor.
- Completion is targeted for first-half FY2029.
- The project aims to modernize upstream infrastructure and support future production growth.
Santos Ltd. and Beach Energy Ltd. have taken a final investment decision (FID) to proceed with the Moomba Central Optimization (MCO) project in Cooper basin, South Australia.
Work on the MCO project includes construction and installation of a single centralized electric-driven compressor station to replace seven ageing gas compressor stations. The work is expected to debottleneck upstream infrastructure and aid in future production growth from the Cooper basin central fields to supply gas to South Australian and eastern Australian markets.
At the Moomba gas plant, the joint venture will install new inlet compression and additional gas fired power generation capacity to run off raw gas and power the upstream satellite.
The companies expect to deliver the project over 3 years, targeting completion in first-half FY2029.
Santos’ will invest $357, while Beach expects to invest $250 million.
Central field production, emissions reduction
Central fields contain more than half of the remaining 2P reserves in Cooper basin and have higher productivity wells, Santos said in a release Mar. 9. “The MCO project is designed to unlock the full productivity of the Central fields, with an IRR greater than 25% expected from Central Fields full-field development that the MCO project is expected to enable,” the company continued.
Additionally, said Santos managing director and chief executive officer, Kevin Gallagher, the project will also lower emissions.
The project “is estimated to reduce Santos Scope 1 emissions by over 40,000 tonnes of CO₂ equivalent per year,” he said.