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

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

Seatrium Secures ABS Backing for Deepwater FPSO Design

Hibiscus Petroleum Starts Drilling at Teal West Field off UK

Petronas to Leverage AI to Expedite Oil and Gas Exploration Activities

Brownfield Output Decline Accelerates, says IEA

Hanwha Ocean Enlists ABB for Singapore’s First Floating LNG Terminal

POSH Set to Tow Nguya FLNG from China to Eni’s Congo Field

DOF Secures Moorings Hook-Up Job in Asia Pacific

PTTEP Hires McDermott for Deepwater Subsea Job off Malaysia

Japan Picks Wood Mackenzie to Assess Trump-Backed Alaska LNG Scheme

Current News

MODEC Ramps Up Hammerhead FPSO Work After ExxonMobil's Go-Ahead

Aesen, DOC JV Targets Subsea Cable Logistics

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Russia Targets 2028 for Sakhalin-3 Gas Project Start Up

Seatrium Secures ABS Backing for Deepwater FPSO Design

MDL Secures Cable Laying Job in Asia Pacific

Hibiscus Petroleum Starts Drilling at Teal West Field off UK

Yinson Production Nets DNV Approval for New FPSO Hull Design

Hanwha Ocean's Tidal Action Drillship Starts Maiden Job with Petrobras

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