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Bayu-Undan CCS project enters FEED phase

bayu undan

Santos, as operator of the Bayu-Undan offshore gas production facility, has announced entry into the front-end engineering and design (FEED) phase for the proposed Bayu-Undan carbon capture and storage (CCS) project. 

According to Santos, the project could potentially store up to 10 million t of carbon dioxide (CO2) per annum, equivalent to 1.5 per cent of Australia’s carbon emissions each year. 

The project is located in  in Timor-Leste and Darwin LNG, and has the potential to be the largest CCS project in the world.

The Bayu-Undan FEED work will include engineering and design for additional CO2 processing capacity at Darwin LNG plus repurposing of the Bayu-Undan facilities for carbon sequestration operations after gas production ceases.

Santos is working closely with the Timor-Leste regulator towards the necessary agreements and regulatory framework that will be required for the Bayu-Undan CCS project. 

Santos chief executive Kevin Gallagher said the FEED builds on the growing momentum for the regional carbon reduction project.

“Located in Timor-Leste with potential CO2 sources from Australian gas projects and other industries in the Northern Territory, Bayu-Undan CCS could be the start of a valuable new carbon services industry for Timor-Leste,” said Gallagher. 

“It would create new jobs and a new revenue stream for the nation once gas production from Bayu-Undan ceases.” 

Santos has a 43.4 per cent operated interest in Bayu-Undan and Darwin LNG. The remaining interest is held by SK E&S (25 per cent), INPEX (11.4 per cent), ENI (11 per cent), JERA (6.1 per cent) and Tokyo Gas (3.1 per cent).

A final investment decision is targeted for 2023.

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