Australian LNG player Santos has awarded a contract to compatriot engineering firm Worley for the proposed Bayu-Undan carbon capture and storage (CCS) project.
Under the contract, Worley will provide front-end engineering and design (FEED) services for the Bayu-Undan offshore facilities and pipeline.
This includes the re-purposing of the Bayu-Undan facility and the offshore section of the gas export pipeline from hydrocarbons to carbon dioxide service, accroding to a Worley statement.
Worley will also provide FEED services for the life extension of the Bayu-Undan facility and pipeline to enable continued safe and reliable operation.
The company said its office in Perth, Australia, would execute the services with support from Worley’s global teams.
Worley did not provide the price tag of the deal.
Santos said in March it had entered into the FEED phase for the CCS project.
The company is the operator of the Bayu-Undan offshore gas production facility in Timor-Leste as well as the Darwin LNG plant.
Santos says the Bayu-Undan CCS project could potentially permanently store up to 10 million tonnes of carbon dioxide per annum, equivalent to about 1.5 percent of Australia’s carbon emissions each year.
Also, the project has the potential to be the largest CCS project in the world.
Santos is targeting a final investment decision on Bayu-Undan CCS for 2023.
The Australian firm has a 43.4 percent operated interest in Bayu-Undan and Darwin LNG. Other partners include SK E&S (25 percent), Inpex (11.4 percent), Eni (11 percent), Jera (6.1 percent) and Tokyo Gas (3.1 percent).
