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    Santos, Eni to share gas infrastructure


The companies will look at sharing infrastructures associated with the gas fields offshore northern Australia, pipeline to Darwin and onshore associated gas processing.

by: Shardul Sharma

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Santos, Eni to share gas infrastructure

Santos on May 3 said it had signed a memorandum of understanding (MoU) with Italy's Eni to cooperate on opportunities in northern Australia and Timor-Leste. The areas of cooperation include sharing infrastructures associated with gas field developments around Barossa and Evans Shoal, pipeline to Darwin and onshore gas processing leading to LNG expansion developments.

The MoU also includes investigating options to re-purpose the Bayu-Undan facilities to extend the life of the project, including a carbon capture and storage (CCS) project, subject to the agreement of the Timor-Leste government.

Santos CEO Kevin Gallagher said the MoU built on the momentum for the development of northern Australia following Santos' final investment decision (FID) on the Barossa gas and condensate project and life extension for Darwin LNG (DLNG) for the next 20 years.

"Eni are already a highly valued partner in the Bayu-Undan project and this MoU strengthens our collaboration and cooperation," Gallagher said. "CCS opportunities at Bayu-Undan are extremely exciting for Santos and Eni and today we are saying, we would like to be open for business to take your CO2.”

Other areas of cooperation include the possible development of Petrel and Tern through Blacktip/Yelcherr gas plant facilities. "As I said when I was in Darwin to announce our FID decision for Barossa, we have approval for two more trains at DLNG and we are open to third-party gas opportunities," Gallagher said.