Santos Ltd. stated Monday it had signed a non-binding memorandum of understanding to produce ENGIE SA with as much as 20 petajoules a 12 months of pure fuel for 10 years from the Narrabri Fuel Mission in New South Wales.
French utility ENGIE has dedicated one hundred pc of the acquisition to Australia, consistent with Santos’ plan to dedicate the mission’s complete manufacturing to the home market. Deliveries will start upon the start-up of the mission, in line with a press release from Adelaide-based Santos.
Santos expects the mission to produce as much as half of New South Wales’ fuel wants. It plans to steadily develop 850 wells. The corporate has but to make a FID (remaining funding choice).
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“Santos already produces Narrabri fuel from appraisal wells for the Wilga Park energy station that generates electrical energy for the northwest NSW grid. This expertise, mixed with our mission growth and manufacturing expertise in Queensland’s Surat Basin, provides us confidence that Narrabri fuel shall be a really aggressive supply of home fuel provide for the east coast market that’s additional advantaged by proximity to clients in NSW,” stated Santos managing director and chief govt Kevin Gallagher.
Since 2011 Santos has invested over AUD 1.5 billion within the asset, in line with the corporate.
“Delays to bringing Narrabri fuel to market have occurred on account of a variety of components together with authorities moratoriums, impartial scientific critiques, delayed and prolonged approvals, authorized appeals and native title processes. Consequently home fuel provide has been tight and home fuel costs have been greater than they need to have been on the east coast”, Gallagher claimed.
“Narrabri shall be topic to a few of the strictest atmosphere and groundwater protections on the planet, and we are going to adjust to them”, Gallagher stated.
Santos and ENGIE additionally dedicated to “exploring decarbonization actions by Santos’ third-party carbon administration enterprise, particularly through the proposed Moomba section II carbon seize and storage mission”, Santos stated.
Moomba CCS began operations October 2024. Section I has a declared capability of as much as 1.7 million metric tons a 12 months of carbon dioxide equal. Moomba CCS injects into depleted reservoirs close to the Moomba oil and fuel gathering and processing complicated, which serves the onshore Cooper and Eromanga basins.
In 2023 two Japanese firms got here onboard after Australia handed laws that may enable overseas firms to ship CO2 through Australian waters. “The signing of a memorandum of understanding between Santos, JX Nippon Oil & Fuel Exploration Corp. and ENEOS Corp. paves the way in which for a joint feasibility examine that can consider the potential to seize, transport and sequester emissions from Japan, supporting enlargement of the Moomba CCS mission”, Santos stated December 18, 2023.
In a press release June 11, 2025, Santos stated, “Section II of the Moomba CCS mission goals to make the most of these depleted reservoirs to retailer third-party emissions from home and Asian clients to create a business carbon administration companies enterprise to assist these clients construct extra sustainable enterprise fashions and to attain their very own emission discount targets”.
To contact the creator, electronic mail jov.onsat@rigzone.com
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