- With more stringent government policies and a global aim to cut carbon emissions, LNG companies face a dilemma to reduce their carbon emissions without affecting their production levels.
- Santos Limited believes that there is a strong potential for burying carbon underground.
- The Moomba CCS project will permanently store 1.7Mt of carbon dioxide per year.
Carbon Dioxide Capture Technology | Source: © Dmitrynew83 | Megapixl.com
In a global push to minimise greenhouse emissions, carbon capture and storage (CCS) has been recognised globally as an effective solution to mitigate the incessant issue. With the advancement of technology, CCS is now a widely accepted and practical technology not just for the oil and gas sector, but has also gained significant prominence in other sectors, including power generation, steel production, and the cement industry.
CCS is one of the best mitigations strategies to combat the rising emissions levels, but will require huge investment and strong governmental support.
LNG players and carbon emission
LNG players are among the top emitters across the energy industry. With more stringent government policies and a global aim to cut carbon emissions, LNG companies are squeezing their capacity to reduce their carbon footprints. In parallel to this, various major players are also incorporating advanced technologies, including CCS to limit their carbon emissions.
Carbon Emission | Source: © Balipadma | Megapixl.com
Must Watch: What is Carbon Dioxide Sequestration?
Santos took the lead for CCS
Santos Limited (ASX:STO), one of Australia's leading LNG players, is taking the lead on CCS technology. The gas giant considers a strong potential for burying carbon underground to reduce carbon footprints associated with the LNG industry.
Currently, Santos is progressing on its Moomba project, which is expected to produce 20Mt of carbon dioxide per year, the second largest in the country behind Chevron’s Gorgon project.
STO along with its partner Beach Energy (ASX:BPT) has already been awarded a AU$15-million grant under the Federal Government’s Carbon Capture Use and Storage Development Fund.
Source: Copyright © 2021 Kalkine Media Pty Ltd
The Moomba CCS project will permanently store 1.7Mt of carbon dioxide per year. Kevin Gallagher, the CEO and MD of Santos, anticipates that the Moomba CCS project would be one of the lowest-cost projects globally to store carbon dioxide at AU$25-30 per tonne.
Carbon emission has become one of the major problems in the global oil and gas industry. The introduction of advanced carbon capture and storage technology holds immense potential for the sector to significantly reduce its carbon footprints.