South Korea needs Australian LNG with carbon capture, Santos CEO says

View of a mannequin of carbon seize and storage designed by Santos Ltd, on the Australian Petroleum Manufacturing and Exploration Affiliation convention in Brisbane, Australia Might 18, 2022. REUTERS/Sonali Paul

MELBOURNE, Might 26 (Reuters) – Santos Ltd (STO.AX) urged South Korea on Thursday to put money into Australian fuel mixed with carbon seize and storage to assist meet South Korea’s wants till 2050.

Australia provides about one-third of South Korea’s LNG imports. Its imports are anticipated to peak in 2039 at simply over 48 million tonnes a 12 months after which ease to about 42 million tonnes by 2050, Santos Chief Govt Kevin Gallagher stated at an vitality safety convention in Seoul.

“This can be a nice alternative for commerce and funding in Australian LNG, to ship vitality safety and cleaner vitality for Korea for one more three many years,” he instructed the convention hosted by South Korea’s authorities, in keeping with a replica of the speech issued by his firm.

Santos is seeking to promote low-carbon LNG from its Barossa fuel mission by extracting carbon dioxide from the fuel and storing it within the depleted Bayu-Undan fuel discipline off East Timor.

The proposed carbon seize and storage (CCS) mission is anticipated to price greater than $1 billion, Gallagher and East Timor have stated. learn extra

Gallagher stated CCS could be important in reaching internet zero carbon emissions by 2050 whereas fossil fuels are nonetheless wanted.

“Carbon seize and storage will allow us to cut back emissions from the manufacturing of pure fuel and LNG, however extra importantly, it gives the chance to assist our prospects cut back or offset emissions from consumption,” he stated.

Santos’ companions in Barossa embrace personal South Korean agency SK E&S.

Gallagher’s feedback got here a few week after a South Korean court docket dismissed a case during which two Indigenous Australian teams sought to dam South Korea’s export credit score companies from offering loans for a pipeline for the $3.6 billion Barossa mission Santos is creating off north Australia.

Different attendees on the South Korean vitality safety convention included executives from Nigeria LNG, Indonesia’s state petroleum firm Pertamina and officers from the Australian, French and U.S. embassies.

Reporting by Sonali Paul;
Modifying by Robert Birsel

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