Santos held talks over Narrabri carbon capture scheme
Talks between Santos and the NSW government over a possible carbon capture and storage plan at Narrabri have put green groups on alert.
Energy giant Santos held talks with the NSW government over developing a carbon capture and storage facility at the controversial Narrabri gas project, raising concern from green groups over potential water pollution within the Great Artesian Basin.
Santos could use “learnings” from its Moomba carbon capture scheme to create a Narrabri carbon project as part of a goal to be a zero emissions reservoir, according to notes from a November 2023 stakeholder meeting between the gas producer and NSW Department of Primary Industries and Regional Development.
A separate briefing note prepared for NSW Energy Minister Penny Sharpe said a tightening of requirements under the commonwealth’s Safeguard Mechanism was likely to encourage Santos to investigate opportunities to abate emissions from its projects.
“Santos has previously expressed interest in opportunities to utilise carbon capture storage in NSW around the Moree region and Santos is likely to ask about the NSW government’s current position on CCS and the need for a regulatory framework,” the November 2023 note for the Department of Regional NSW stated.
“A CCS facility in NSW could also be used by other high-emitting industries in NSW to abate their emissions. Santos has made public commitments to be net zero emissions by 2040.”
Santos declined to comment and the NSW government did not immediately respond to a request for comment.
While Santos has not followed through with any formal carbon capture proposal or project related to Narrabri, environmental advocates said they remain concerned. “Carbon capture and storage projects are no solution to abating emissions from new fossil fuel projects – the only way to truly do that is to not build new gas projects in the first place,” said Carmel Flint, national co-ordinator with Lock the Gate Alliance.
The group used Freedom of Information laws to reveal the previously undisclosed correspondence about a potential Narrabri carbon capture plan.
Narrabri could supply up to half of NSW’s gas needs but the project has been beset by years of planning delays and regulatory hurdles.
Australia’s eastern seaboard may experience a narrowing of the gas surplus for the third quarter of 2025, underlining the ongoing tight supply situation as major companies and policymakers ramp up a push for LNG imports to ease shortfall concerns.
Santos has signalled it could approve the Narrabri project as soon as this year, although it still awaits final decisions on pipelines and a decision by the Native Title Tribunal on climate impacts.
Chief executive Kevin Gallagher said in February that Australian authorities should approve Narrabri if they are serious about averting a looming east coast gas shortfall and safeguarding domestic jobs.
Santos has touted Moomba as the lowest-cost carbon capture and storage facility in the world, and called for the Albanese government to lift restrictions allowing the importation of carbon dioxide or risk being beaten by global competitors wanting to make money from storing hard-to-abate emissions.
The government has included carbon capture and storage in its future gas strategy but the technology has so far failed to gain widespread traction as part of a push to hit net zero goals by 2050.
Last year Queensland’s environmental regulator killed off Swiss mining giant Glencore’s proposal to dump carbon dioxide waste in the aquifers of the Great Artesian Basin, due to the potential impacts on groundwater resources.
Mullaley Pipeline Accord spokeswoman and cattle farmer Margaret Fleck said Santos’s consideration of the Narrabri carbon capture scheme stoked environmental fears.
“The Narrabri Gas Project is located within a key recharge zone of the basin,” she said.
“Thousands of farmers and many towns including Moree rely on the Great Artesian Basin for water.
“The risk to the Great Artesian Basin was one of the principal reasons Glencore’s proposed Queensland carbon capture and storage project was rejected last year.
“The NSW Minns government must not entertain such a destructive proposal by Santos.”
One of the world’s biggest carbon capture and storage projects, Chevron’s Gorgon facility in Western Australia, has also struggled to hit its initial targets.
The Gorgon project was to be the world’s largest carbon capture and storage site, capable of accepting four million tonnes of buried carbon dioxide each year.
But it has been beset by problems and currently stores about 1.6 million tonnes of carbon dioxide a year.
This has required Chevron to cover the surplus by buying carbon credits to satisfy its obligations to operate on Barrow Island, although works are under way to improve its performance.
Santos last week cleared the final regulatory hurdle for its $5.8bn offshore pipeline in the Timor Sea, overcoming a long and expensive legal battle against environmentalists.
Australia’s offshore energy regulator, NOPSEMA, gave the green light to the last major approvals required before commissioning of the Barossa project, which will pipe gas to the Darwin LNG facility and create 350 jobs over the next 20 years.
The company has also reported that widespread flooding in South Australia has forced it to shut its upstream gas facilities in the state’s Cooper Basin, potentially curtailing supplies in the lead-up to winter.
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