March 31, 2021 Read More →

Barossa gas field has massive amounts of CO2

Energy Voice:

Santos’ proposed offshore Barossa gas field development off Australia’s Northern Territory has the unfriendly tag of having more carbon dioxide than any gas currently made into liquefied natural gas (LNG), finds a new report from the Institute for Energy Economics and Financial Analysis (IEEFA).

The gas contains so much carbon dioxide (CO2) that most of it will have to be separated and vented offshore to meet the requirements of the Darwin LNG plant it will be piped to.

“Barossa gas has three times the CO2 content that the Darwin LNG plant facility can handle,” says report author and LNG industry expert John Robert. 

And Santos signed an LNG sales agreement with Mitsubishi Corporation’s Diamond Gas International late last year for 1.5 million tonnes of Santos-equity LNG for 10 years with extension options.

“Unfortunately, this 10 year contract is simply not long enough to attract the necessary additional finance to get the expensive Barossa project off the ground,” says Bruce Robertson, gas/LNG analyst with IEEFA. “Without 20 year offtake contracts, investors still don’t have a deal.” 

[Staff Report]

More: Santos’ Barossa LNG emissions create major risks for shareholders

Posted in: IEEFA In the News

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