Sept 14 (Reuters) - Australian natural gas major Santos (STO) said on Tuesday it will collaborate with a regulator in Timor-Leste to develop carbon capture facilities at its Bayu-Undan joint venture, as part of its goal to achieve net zero emissions by 2040.
Santos, which earlier this month sealed the deal to buy Oil Search (OSH) , will work with petroleum and minerals regulator Autoridade Nacional do Petróleo e Minerais (ANPM) to repurpose and develop existing Bayu-Undan facilities and reservoir for carbon capture storage (CCS).
"(The) CCS at Bayu-Undan has (a) potential capacity to safely and permanently store about 10 million tonnes per annum of carbon dioxide," Santos Chief Executive Officer Kevin Gallagher said in a statement.
Santos had said in May it was considering converting the Bayu-Undan facilities for CCS as part of its objective to achieve net zero status by 2040.
The company owns a 43.4% operating interest in Bayu-Undan facility in the Timor Sea. A unit of South Korean petroleum firm SK Inc 034730.KS , Italy's Eni ENI.MI , Japanese oil company INPEX Corp 1605.T , and Tokyo Timor Sea Resources hold the rest of the stake.
CCS technology transports carbon dioxide from where it is emitted and stores it at a site to prevent its release into the atmosphere. However, this is seen by green groups as untested and unnecessarily prolonging the life of the fossil fuel industry.
