Santos, Australia’s second-largest oil and gas producer, announced this week that its $220-million Moomba carbon capture and storage (CCS) project in the Cooper Basin is fully operational, injecting CO2 into depleted oil and gas reservoirs at full rate.
The project is expected to store 250,000 mt of CO2 by year’s end, with plans to increase injection capacity to 1.7 mtpa over the next year, as the supply of emissions allows. Santos sees the project as a key component in its goal of achieving net zero operational emissions by 2040.
The CCS facility located in South Australia's desert outback features a four-stage compressor, five injection wells, CO2 dehydration units, and pipelines. CO2 from the Moomba gas plant is injected into depleted underground reservoirs in the Strzelecki and Marabooka fields.
“The successful startup of Moomba CCS phase one is a potential game changer not only for Santos, but for hard-to-abate industries across Australia,” Santos CEO Kevin Gallagher said in a statement.
He emphasized that the facility’s lifecycle cost is under $30/mt ton of CO2, a price point that means CCS technology “can no longer be ignored.” Santos has previously mentioned lifecycle costs as low as $24/mt.
Gallagher also noted strong customer interest, with Santos signing several memoranda of understanding with domestic and international companies to explore capturing, transporting, and storing their emissions at Moomba. He said this will lay the groundwork for phase two of the project as a commercial carbon-management service.
Santos praised Australian regulators in its announcement, describing them as “world class” partners in ensuring the project meets international standards for its operation and its carbon credit scheme.
The Moomba CCS project is a joint venture with fellow Australian operator Beach Energy, which holds a 30% stake. Beach, in a separate statement, said the CO2 storage capacity at Moomba would offset nearly a third of its nonoperational, or equity, emissions.
Santos also highlighted the potential for CCS expansion in the Moomba region, estimating it holds a storage capacity of 20 mtpa for up to 50 years.
