Moomba Carbon Storage project - Santos

Moomba CarbonStorage projectA project for our timeand for future generationsSantosDelivering CO2 solutionsCapturing and securely storing CO 2 (the most significantgreenhouse gas) deep underground is one of the most practicaland efficient responses to combating climate change.Santos’ Moomba Carbon Storage Project (MCS) could eventuallystore up to 20 million tonnes of CO 2 per annum and 1 billiontonnes over the life of the project.MCS can deliver Australia its first large CO 2 abatement option,providing the storage solution which will see CO 2 from sourcesin eastern Australia transported to central Australia andpermanently stored underground.MCS will establish Australia as a leader in climate changeinitiatives and will provide a crucial enabler for the developmentof clean coal technology in eastern Queensland and New SouthWales’ Hunter Valley.What is CCS?Carbon capture and storage (CCS) is a technology optionwhich aims to reduce greenhouse gas emissions from pointsources such as coal-fired power stations and majorindustrial plants.CCS involves the capture and separation of CO 2 at its source,transportation via dedicated pipelines to a storage locationand injection into deep geological reservoirs.CCS is one of the few large-scale options to lower greenhousegas emissions. Indeed the International Energy Agency hasestimated that CCS could deliver the second largestcomponent of emissions abatement after energy efficiency.

The projectMoomba Carbon Storage involves three main phases, ultimatelydelivering a regional carbon storage hub for eastern Australia.Phase 1, will demonstrate the technical and economic feasibilityof storing CO 2 in depleted oil and gas fields in the Cooper Basin,in central Australia. It involves the capture of all CO 2 separatedas part of the gas processing operations at Moomba,transporting that CO 2 to a designated site and injecting the CO 2stream into partially depleted oil reservoirs.The injected CO 2 will re-pressurise the reservoirs and sweepresidual oil left behind by traditional recovery methods (this iscalled enhanced oil recovery). Over time the oil is graduallyexhausted, at which point the extraction wells are capped.Injection continues and the CO 2 is permanently stored andmonitored in the underground reservoir.This phase, which could commence as early as 2010, will captureand permanently store 1 million tonnes of CO 2 each year.The second phase focuses on building capacity and confidencein the technology as increasing volumes of CO 2 are movedtowards Moomba. MCS would link to the development of a cleancoal power generation project in eastern Queensland or/andNew South Wales’ Hunter Valley. CO 2 captured from that projectwould be transported towards Moomba utilising existinginfrastructure wherever possible.Assuming success in the first two phases, carbon capture andstorage will become commercial reality in the final phase of theproject. Phase 3 will deliver Australia’s first common-usercarbon storage hub at Moomba. Significant quantities of CO 2would be captured from key point sources in New South Wales,Queensland and South Australia. Dedicated CO 2 pipelines wouldbe built to connect these emitters to the Moomba carbonstorage hub. The CO 2 would be distributed to designated sitesand stored in depleted oil and gas reservoirs or deep aquifers.Moomba processing facility, central Australia.

Oil fieldGas fieldOil pipelineGas pipelineMapped AreaStorage of CO2 in the Cooper Basin1. Once the CO 2 has been captured from the source it will becompressed to reduce it to a super-critical liquid ready fortransportation.2. The “liquid” CO 2 is then injected at high pressure into thesubterranean reservoir thousands of metres underground.3. An impenetrable rockcap will hold the CO 2 in place.Cooper Basin oil and gas fields and pipline infrastructureWhy the Cooper Basin and Moomba?Moomba Carbon Storage (MCS) represents a unique andcompelling opportunity to implement an early (2010),full-cycle (capture to storage), commercial-scale (> 1 milliontonnes per annum) carbon capture and storage project inAustralia.1. The Cooper Basin oil and gas fields, coupled with theMoomba processing plant, are Australia’s largest onshoreresource project representing $8billion of investment.The Cooper Basin geology is very well-understood, withover 2300 wells, 220 fields and nearly 40 years ofproduction history.2. Initial storage will be in depleted oil and gas fields withsubsequent scale-up into saline aquifers.3. MCS is ready-to-go. All components are in one place underaligned commercial ownership.4. The Cooper Basin and Moomba are centrally located withrespect to major existing pipeline corridors in Qld, NSWand SA, yet remote from major population centres.4. The injection wells are capped and over centuries the CO 2will combine with water to form harmless minerals.123300 metreimpenetrablerockcap45. Legislation exists in SA to allow this project to commencenow.6. The Moomba Carbon Storage project will store up to20 million tonnes of CO 2 per annum for up to 50 years.Underground CO 2 storage solution more than 2.5 kilometres below the surface.

Managing any risksThe risk of CO 2 leakage from the depleted Cooper Basin oil andgas reservoirs is extremely low. These reservoirs have trappedhydrocarbons for millions of years and are expected tosimilarly entrap CO 2. In addition, any potential for leakagewill be managed through careful storage and site designbacked up with rigorous early detection mechanisms. TheCooper Basin has been recognised by Geoscience Australiaand others as an ideal geosequestration site because of thehighly impermeable caprocks, geological stability, absence ofleakage paths and trapping mechanisms.In terms of surface facilities, Santos has been safelyproducing, processing and transporting gas in the CooperBasin for nearly 40 years. In addition, Santos has beenroutinely injecting and withdrawing gas from a majorunderground gas storage facility at Moomba for over 15 years.Mtpa = million tonnes per annumWho’s involved?The Moomba Carbon Storage project is being developed bySantos as the operator of the Cooper Basin Joint Venture. Theother parties involved are Beach Petroleum and Origin Energy.This team has decades of oil and gas exploration and productionexperience coupled with a proven track record in major projectmanagement.Santos is a leading Australian energy company with theexperience, knowledge and vision to deliver Australia’s firstcommercial-scale CO 2 storage project at the Moomba gas hub.Santos has sought a Commonwealth government grant tosupport the development of the demonstration phase of MCS.“At Santos we recognize one of our key environmentalresponsibilities is to pursue strategies that addressthe issue of greenhouse gas emissions.”Santos Greenhouse Policy, 2004.Moomba storagepotential1000MtSouth Australia14MtpaQueensland65MtpaNew South Wales76MtpaFor further information contact:General enquiriesMedia enquiriesMike CongreveMatthew DomanSantos LimitedSantos Limited60 Flinders Street, Adelaide 60 Flinders Street, AdelaideSouth AustraliaSouth Australia+61 (8) 8116 7613 +61 (8) 8116 5260500 kmVictoria83MtpaStationary energy emissions sourcesCarbon infrastructure develops around existing gas infrastructureSantos