Santos and Beach Energy secure new carbon storage licence near Moomba

Santos and its joint venture partner Beach Energy have achieved a significant milestone by securing additional carbon storage acreage, having been awarded a Gas Storage Retention Licence west southwest of Moomba. This development underlines their commitment to expanding carbon capture and storage (CCS) capabilities.

Licence Awarded Under South Australian Legislation

The Licence, granted under the South Australian Petroleum and Geothermal Energy Act by the SA Department for Energy and Mining, authorizes the joint venture to conduct activities for establishing the feasibility of CO2 storage in natural reservoirs. This includes testing the reservoirs for CO2 storage and determining the commercial viability of storage techniques.

Moomba CCS Project: A Flagship Initiative for Carbon Storage

The Licence area is strategically located near Santos’ flagship Moomba carbon capture and storage project, which is on track to commence operations next year. The Moomba CCS project has the potential to safely and permanently store up to 1.7 million tonnes of CO2 annually in geological reservoirs.

Joint Venture Between Santos and Beach Energy Gains Carbon Storage Acreage in South Australia

Significant Carbon Storage Resource Booked by Santos

Santos has already earmarked a 100 million tonnes carbon storage resource in the Cooper Basin, South Australia. Following evaluations, the company will report on the carbon storage resource volumes associated with this additional acreage, bolstering their capacity for carbon storage.

CEO Statements on the Joint Venture’s Prospects

Kevin Gallagher, Santos Managing Director and CEO, expressed optimism about the new Licence area, highlighting its potential for cost-effective carbon capture and storage. He emphasized the role of CCS in abating emissions for hard-to-abate sectors and its importance for customers in Asia seeking decarbonization solutions.

Bruce Clement, Beach Energy Interim CEO, also supported the initiative, stating that natural gas paired with CCS will aid Australia in achieving emissions reduction goals while ensuring energy reliability and affordability.

The acquisition of additional carbon storage acreage by Santos and Beach Energy represents a significant advancement in their efforts to develop sustainable energy solutions and contribute to global decarbonization efforts.