Santos signs MOU with ENI to progress NT gas expansion plans

Santos is surging ahead with its Territory expansion plans, inking a Memorandum of Understanding (MOU) with the Italian multinational oil and gas company that supplies Darwin’s gas, ENI.

• $4.7 billion NT gas investment to create 600 jobs, unlock new business, export opportunities
• Santos carbon capture storage an opportunity for Australia to lead the world

Santos and ENI have agreed to co-operate on opportunities in Northern Australia and East Timor.

Santos and ENI have agreed to co-operate on opportunities in Northern Australia and East Timor.

This may include sharing infrastructures associated with gas field developments around Barossa and Evans Shoal, pipeline to Darwin and onshore associated gas processing leading to LNG expansion developments.

It also includes investigating options to re-purpose the Bayu-Undan facilities to extend the life of the project, including a carbon capture and storage project, subject to the agreement of the Timor-Leste government.

Santos managing director and chief executive officer Kevin Gallagher said ENI was a highly valued partner in the Bayu-Undan project and the MOU strengthened the collaboration and co-operation.

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He said the MOU built on the momentum for development of Northern Australia following Santos’ recent Financial Investment Decision announcement in Darwin of the Barossa gas and condensate project and life extension for Darwin LNG for the next 20 years.

Mr Gallagher said carbon capture storage opportunities at Bayu-Undan were extremely exciting for Santos and Eni.

“We are saying, we would like to be open for business to take your CO2,” Mr Gallagher said.

He said Australia had an opportunity to get ahead of the pack globally in the carbon capture space.

Mr Gallagher has already said Santos expects to give the tick this year to its carbon capture and storage project in the Cooper Basin, which has the potential to store up to 20 million tonnes of carbon dioxide a year.

“A carbon capture storage project at Bayu-Undan could provide a new job-creating and revenue-generating industry for Timor-Leste with quality carbon credits increasing in both demand and value internationally,” he said.

Santos and ENI have agreed to work together on projects in the Northern Territory and East Timor. Pictured is an oil and gas field in East Timor. Picture: Dimas Ardian/Bloomberg

“Capturing and storing CO2 from industries in the Northern Territory will help it meet its net-zero emissions by 2050 target.

“That’s good for the environment, good for local jobs, good for local investment and good for regional development.”

Other areas of co-operation include the possible development of Petrel and Tern through Blacktip/Yelcherr gas plant facilities which send gas to Darwin.

“As I said when I was in Darwin to announce our FID decision for Barossa, we have approval for two more trains at DLNG and we are open to third party gas opportunities,” Mr Gallagher said.