DILI, 17 june 2022 (TATOLI) – The President of the National Petroleum and Minerals Authority (ANPM), Florentino Soares Ferreira has revealed that the Bayu-Undan Carbon Capture and Storage (CCS) project is estimated to generate up to US$7 billion.
In his closing statement at the 4th Timor-Leste Energy and Mining Summit, Ferreira said the CCS project was an opportunity for Timor-Leste to generate more billions in revenue from the Bayu-Undan reservoir and facilities as the gas production from the field is expected to run dry by october, this year: “Thus, the storage fee of the of Bayu-Undan CCS project is estimated between US$5 and 7 billion.”
“As I have said earlier that the gas supply of gas from the Bayu-Undan field is expected to run dry in october and I think, we need to find other opportunities to continue to generate revenues from the field,” Ferreira told reporters at the Closing of the 4th Timor-Leste Energy and Mining Summit, in City-8 Hall, in Dili, on thursday.
He said more studies would be carried out to see the risk and advantages of the implementation of the project.
In september 2021, the National Petroleum and Minerals Authority (ANPM) and Santos signed an agreement on the Bayu-Undan Carbon Capture and Storage (CCS) Project at Bayu-Undan Field.
At the opening of the 4th Timor-Leste Energy and Mining Summit, the Managing Director and CEO of Australian Santos Ltd, Kevin Gallagher said that Santos is currently working with the Timor-Leste regulator, ANPM, towards the necessary agreements and regulatory framework for the Bayu-Undan CCS.
“It will be critical to ensure the appropriate regulatory frameworks are in place for this work and we are currently working with the Government and regulator ANPM on this.”
He said Bayu-Undan CCS could be a low-cost, large-scale, commercial CCS project that could store CO2 from regional projects, including any future Timor Leste developments: “This CO2 storage capacity at Bayu-Undan has the potential to provide a carbon solution for undeveloped fields in the region.”
Bayu-Undan Carbon Capture and Storage (CCS) project has the potential capacity to safely and permanently store approximately 10 million metric tons of carbon dioxide (CO2) per year, which could build a new job-creating for Timor-Leste.
Previously, Offshore Energy reported that storing up to 10 million tons of CO2 per year is equivalent to about 1.5% of Australia’s carbon emissions each year. Thus, it has the potential to be the largest CCS project in the world. It will also be one of the many that will be critical to helping the world meet its climate goals.
In his statement at the signing of the agreement on the Bayu-Undan Carbon Capture and Storage (CCS) Project, Ferreira said that the project will put Timor-Leste on the world map as one of the leading countries on the decarbonization efforts towards a net-zero target by 2050.
“I look forward to the benefits that this project would bring for Timor-Leste, including job creation, revenue to the government, partnership opportunities, and knowledge transfer as well as capacity building in Timor-Leste – particularly a partnership with our National Oil Company TIMOR GAP, E.P,” he said.
Journalist: Filomeno Martins
Editor: Nelia Borges
