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05 Sep 2022

Five Majors Awarded Greenhouse Permit off Western Australian Coast

Five Majors Awarded Greenhouse Permit off Western Australian Coast
Image: Woodside Energy

Woodside Energy Ltd (Woodside), BP Developments Australia Pty Ltd (bp), Japan Australia LNG (MIMI) Pty Ltd (MIMI), which is owned equally by Mitsubishi Corporation and Mitsui & Co., Ltd, Shell Australia Pty Ltd (Shell) and Chevron Australia Pty Ltd (Chevron), collectively referred to as the Joint Venture, have been awarded the greenhouse gas assessment permit [G-10-AP] (the Permit), located in the Northern Carnarvon Basin off the north-western coast of Western Australia. 

The Permit, which is located approximately 125 km north-west of Dampier and covers an area of 1775 km2, contains the depleted Angel Gas Field. The Joint Venture has extensive existing data and knowledge of the field following decades of petroleum exploration and production. 

Woodside, bp, MIMI, Shell and Chevron will each hold a twenty percent (20%) participating interest in the Permit, with Woodside as Operator

The permit award represents an important milestone for the Joint Venture as it continues to assess the technical, regulatory and commercial feasibility of capturing carbon emitted by multiple industries located near Karratha in Western Australia. The Joint Venture will now pursue evaluation and appraisal work to investigate the potential for the geological storage of carbon dioxide in the Permit area. 

A multi-user carbon capture and storage (CCS) project near Karratha would be ideally located to aggregate emissions from various existing sources. It would also have the potential to facilitate the development of new lower-carbon industries, such as the production of hydrogen and ammonia, by providing a local solution for emissions. 

The size of the CCS facility is subject to the completion of additional technical, regulatory and commercial studies, but notionally it could have a processing capacity of up to 5 million tonnes of carbon dioxide per annum. 

Woodside CEO Meg O’Neill welcomed the award of the permit as another key step towards the development of a pioneering, multi-user CCS project near Karratha. 

“The successful deployment of CCS in Western Australia has the potential to create new jobs, protect current jobs and contribute to achieving greenhouse gas (GHG) emission reduction targets. 

“For Woodside, it will be an important addition to our portfolio of carbon management options, as we work towards our own aspiration of net zero by 2050,” she said. 

MIMI Managing Director and CEO Hiroyuki Kurahashi said: “MIMI is pleased that the Permit was awarded to the Joint Venture and we are excited to work with our partners in contributing to the environmental solution by helping to manage and reduce CO2 emissions through this multi-user CCS project.” 

bp Vice President Australia Gas and Low Carbon Energy Rachael Risucci, said: “This is a fantastic opportunity for bp, working alongside our joint venture partners, to leverage our deep global expertise and explore the establishment of a large-scale, multi-user CCS hub to help decarbonise hard-to-abate sectors, and underpin Australia’s energy transition.” 

Shell Australia Country Chair Tony Nunan said: “At Shell, we believe carbon capture and storage will be essential for helping society achieve net-zero emissions, particularly for sectors of the economy that are hard to decarbonise. 

“Based off the coast of Western Australia, the project will support both the Western Australian and Australian economies as they transition to a low-carbon future, and Shell is pleased to be working in collaboration with our partners and government to play a role in that.” 

Chevron Australia Manager Director Mark Hatfield said: “Chevron has a unique set of capabilities, assets, and customer relationships to support the further deployment of carbon capture and storage in Australia. 

“Collaboration within the industry, as well as with government and customers, is going to be key in the development of this critical emissions reduction technology and we look forward to working with our joint venture partners as we investigate the potential of this permit area.” 

Press release


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