Australia Tells Companies to Nominate Acreage for Offshore Carbon Storage

Sonali Paul
Wednesday, June 16, 2021

Australia asked companies on Wednesday to nominate offshore acreage they want to explore for places to bury carbon dioxide, part of a government drive to promote carbon capture and storage (CCS) to help cut emissions.

"The coalition government is keen to accelerate the development of (CCS) projects and offshore greenhouse gas storage offers a perfect investment opportunity," Resources Minister Keith Pitt said.

The last time Australia released offshore acreage for carbon capture and storage was in 2014. Wednesday's announcement came a day after the government called for bids for offshore oil and gas exploration.

Companies can nominate areas in Australian federal waters, which start three nautical miles offshore, where they want to explore for storage locations, with nominations due in July and the offshore acreage open for bidding in December.

Australia is already home to the world's biggest commercial-scale CCS project at the Gorgon liquefied natural gas (LNG) project, where Chevron Corp is injecting carbon dioxide (CO2) under Barrow Island off Western Australia.

The project has yet to reach its full capacity of storing up to 4 million tonnes a year of CO2, however it did contribute to a 5% drop in Australia's carbon emissions in 2020.

"Like any pioneering endeavor, the carbon capture sequestration system has presented some challenges," a Chevron spokesperson said, adding that the company is focused on ensuring it runs safely and reliably over its 40-plus year life.

The call for CCS nominations came the day after the government sought bids on acreage for oil and gas exploration, despite the International Energy Agency's warning last month that to achieve net zero emissions by 2050 there should be no new fossil fuel investments.

"The decision to open up new oil and gas exploration, at a time when energy experts, investors, and our strategic allies are all moving away from fossil fuels, goes against all scientific and economic reason," Climate Council acting chief executive Martin Rice said. 

(Reporting by Sonali Paul; Editing by David Clarke)

Categories: Australia/NZ Decarbonization

Related Stories

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Petronas Expands Suriname Portfolio with Deepwater Block Acquisition

Woodside Agrees Long-Term LNG Supply with Petronas Unit

MODEC and Terra Drone Renew FPSO Drone Inspection Partnership

Chuditch Gas Field Drilling Ops Get Delayed to Next Year

French Oil Major Acquires Interests in Multiple Blocks in Southeast Asia

Fugro Expands Geotechnical Testing Capabilities in Indonesia

CNOOC Starts Production at Offshore Field in South China Sea

Current News

One Shelf Drilling Rig Up for New Job in India, Other for Disposal

Four Jack-Up Drilling Rig Deals Set to Bring In $129M for Borr Drilling

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com