Santos Ltd. and Eni are considering options to repurpose and prolong the life of Bayu-Undan field infrastructure in the East Timor sector of the Timor Sea. Ideas include establishment of a carbon capture storage (CCS) scheme, a move that would require approval of the East Timor government.
The field joint venture partners signed a wide-ranging memorandum of understanding to cooperate on opportunities in northern Australia and East Timor.
Areas of cooperation include assessment of synergies of sharing possible infrastructures associated with Barossa and Evans Shoal gas fields, the undersea pipeline to Darwin, plus associated onshore gas processing that could lead to expansion of LNG infrastructure.
Santos said a CCS project at Bayu-Undan could create a revenue-generating industry for East Timor at a time when quality carbon credits are increasing in demand and value internationally.
Significantly, Santos needs to offset carbon emissions from the Barossa project which has a high percentage of carbon dioxide in the gas reservoir. Nearby Evans Shoal field also has a high CO2 content.
A final investment decision for the $3.6 billion Barossa project was announced at the end of March. That decision triggered the beginning of a $600-million investment in Darwin LNG and pipeline tie-in projects that will extend the life of the infrastructure for another 20 years.
The LNG plant, operated by Santos, can produce about 3.7 million tonnes/year of LNG. Santos has approval for two more LNG trains and said it is open to third party gas opportunities.
Other areas of collaboration include the possible development of Petrel and Tern gas fields in the Bonaparte Gulf through Eni’s existing 100%-owned Blacktip-Yelcherr gas plant infrastructure on the eastern Bonaparte coast in the Northern Territory.