Barossa Export Pipeline
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The Barossa Export Pipeline is a proposed natural gas pipeline in Australia.[1]
Location
The pipeline would run from the Barossa field to a connection point with the proposed Darwin Pipeline Duplication Project, which would connect the Barossa Export Pipeline to the existing Darwin LNG terminal. [2]
Project details
- Operator: Santos Limited[3][4]
- Owner: Santos Limited (50%), SK E&S (37.5%), Jera (12.5%)[5][6]
- Parent company: Santos Limited, SK Group, Chubu Electric Power and TEPCO Fuel & Power
- Length: 260-290 kilometers[1][7]
- Diameter: 24-26 inches[7]
- Status: Proposed
- Start year: 2025[8]
- Cost: US$3.6 billion[9]
Background
In March 2018, the pipeline was included in the Barossa Offshore Project Proposal (OPP) accepted by the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) and presented by ConocoPhillips. The pipeline will provide a new source of gas (the Barossa field) to the Darwin LNG Terminal once the Bayu-Undan offshore gas field is exhausted.[1][10]
In 2021, Santos bought the Barossa offshore development project from ConocoPhillips for $4.7 billion.[11] In March 2021, Santos Ltd announced a final investment decision (FID) on the Barossa gas project that included the pipeline. The full project cost was estimated at AU$3.6 billion, with plans to commence gas production during the first half of 2025.[8]
In early 2022, Japan's Jera completed the acquisition of a 12.5% stake in the Barossa offshore development project.[5]
Initially, the pipeline was going to tie into the existing Bayu-Undan to Darwin pipeline, but in 2022 Santos proposed the Darwin Pipeline Duplication project to extend the Barossa gas export pipeline directly to the Darwin LNG Terminal.[12] In this way, the Bayu-Undan export pipeline would be available to transport CO2 to the Bayu-Undan field for Santos' potential carbon capture storage (CCS) initiative.[12][13]
Opposition and legal actions
In March 2021, Jubilee Australia, The Australia Institute, and the Environment Centre NT submitted a document on the Barossa Offshore Development to the Japan Bank for International Cooperation (JBIC) recommending "that JBIC does not proceed with this project at this time."[14] The document argued that the project and its infrastructure are a threat to biodiversity in the Tiwi Islands, and that they could affect marine life, including critical habitat for marine turtles and important fishing grounds.[14] The document also mentioned that an appropriate consultation process with Tiwi traditional owners was "severely lacking."[14] Finally, the three entities highlight that the Australian public is most likely not going to benefit from the project, and that the Barossa proposal will greatly harm the environment and lead to the acceleration of climate change.[14]
In March 2022, traditional owners from the Tiwi Islands in the Northern Territory launched legal action led by Tiwi Islands Traditional Owner Dennis Tipakalippa to block a drilling permit in Barossa.[15][16][17] In September, Australia's federal court backed the traditional landowner's challenge, who argued that Santos hadn't consulted them about drilling for the project.[15][16] As a result, Santos suspended drilling activities in the area.[15][16]In December 2022, Santos appealed the decision and lost.[16] Nevertheless, the company said that their Barossa project remained on track.[18]
In December 2022, NOPSEMA conducted short notice inspections of Santos' Barossa facilities and learned of Santos' plans to commence building of the Barossa export pipeline a the end of January 2023.[17] As a result, NOPSEMA determined that Santos was "required to obtain more information about the environmental risks of pipeline construction to submerged cultural heritage" and that the pipeline's impacts "were not identified in its environmental approval."[17] Consequently, NOPSEMA confirmed that Santos was to halt pipeline construction until any risks to underwater cultural heritage were identified and mitigated accordingly.[17] The company was also asked to submit weekly reports to NOPSEMA regarding progress made in the cultural assessments.[19] Tiwi Islands Traditional Owners welcomed NOPSEMA's decision.[17][20]
In mid December, the Environment Centre NT lodged a formal complaint about Santos, saying that the company had "issued false and misleading statements to investors about its Barossa gas project during and after the court battle."[19] Environment Centre's director Kristy Howey argued that Santos had said that "delaying drilling would cost thousands of dollars a day", but later contradicted their statements, saying that "there would be no material cost impact and the project timetable would stay on track."[19]
In July 2023, Santos confirmed that the Barossa project scheme was 60% complete, saying that "Fabrication of subsea hardware manufacture and planning of the gas pipeline and subsea campaigns are all progressing well."[9] However, as of July 2023 drilling operations remained suspended and Santos was still implementing NOPSEMA's requirements to investigate underwater cultural heritage along the Barossa export pipeline route.[9] According to Santos, however, “Assuming that drilling recommences before end-2023 and that the gas export pipeline commences installation in 2023, the Barossa project remains on target to commence production in the first half 2025 and within current cost guidance.”[9]
Expansion projects
Darwin Pipeline Duplication Project
Santos proposed the Darwin Pipeline Duplication Project to transport gas from the Barossa Export Pipeline to the existing Darwin LNG Terminal.
The Darwin Pipeline Duplication project will duplicate a part of the existing Bayu-Undan pipeline, which was initially planned to transport gas from the Barossa field, through the Barossa Export pipeline, to the LNG terminal. However, as part of the plan to make the Barossa project carbon capture and storage (CCS) ready, Santos and its Barossa project partners decided to free up the Bayu-Undan pipeline to transport CO2 from Darwin to the depleted Bayu-Undan field.
Santos and partners took a final investment decision for the Darwin Pipeline Duplication project in 2022.[21]
In June 2023, the Institute for Energy Economics and Financial Analysis (IEEFA) submitted a report to the Northern Territory Environmental Protection Authority that assessed the Darwin Pipeline Duplication Project and the carbon capture storage component of the Barossa/Darwin LNG project.[22] This report concluded that "Barossa/Darwin LNG represents the most CO2-intensive gas project in Australia (Nothing safe about emissions-intensive Barossa)," and reiterated the importance of having a comprehensive decommissioning plan for the pipeline, among other points.[22]
- Operator: Santos Limited[3][4]
- Owner: Santos Limited (50%), SK E&S (37.5%), Jera (12.5%)[5][6]
- Parent company: Santos Limited, SK Group, Chubu Electric Power and TEPCO Fuel & Power
- Length: 123 km[23]
- Diameter: 26 - 34 inches[23]
- Status: Proposed[24]
- Start year: 2025[24]
- Cost: $311 million[24]
Articles and resources
References
- ↑ 1.0 1.1 1.2 Barossa pipeline fact sheet, ConocoPhillips, Jan. 2019, accessed Aug. 9, 2021.
- ↑ "Gas Export Pipeline Installation | Santos". Santos. Retrieved 2023-08-28.
- ↑ 3.0 3.1 Offshore Technology (November 2, 2021). "Barossa Gas Export, Australia". Offshore Technology. Retrieved August 10, 2023.
{{cite web}}: CS1 maint: url-status (link) - ↑ 4.0 4.1 Northern Territory Government. "Darwin Pipeline Duplication Project". ntepa.nt.gov.au. Retrieved 2023-09-01.
- ↑ 5.0 5.1 5.2 Pekic, Sanja (May 2, 2022). "Jera wraps up Barossa stake acquisition from Santos and joins Darwin LNG". Offshore Energy. Retrieved August 10, 2023.
{{cite web}}: CS1 maint: url-status (link) - ↑ 6.0 6.1 "Santos agrees sale of 12.5% interest in Barossa project to JERA | Santos". Santos. 2021-12-08. Retrieved 2023-09-01.
- ↑ 7.0 7.1 "Barossa Area Development Offshore Project Proposal" (PDF). Nopsema. 5 March 2018. Retrieved August 10, 2023.
{{cite web}}: CS1 maint: url-status (link) - ↑ 8.0 8.1 Santos announces FID on $3.6bn Barossa gas project in Australia, Mar. 30 2021, accessed Aug. 9, 2021.
- ↑ 9.0 9.1 9.2 9.3 "Santos progresses at Barossa, development drilling still suspended". Upstream Online | Latest oil and gas news. 2023-07-20. Retrieved 2023-08-10.
- ↑ "Barossa Gas Project | Santos". Santos. Retrieved 2023-08-11.
- ↑ "Traditional owners target international financiers in legal bid to block billion-dollar gas project". Retrieved 2023-08-10.
- ↑ 12.0 12.1 "Sharing insights elevates their impact". S&P Global. 2022-04-05. Retrieved 2023-08-28.
- ↑ "Darwin Pipeline Duplication Project Supplementary Environmental Report" (PDF). Santos. May 2023. Retrieved August 28, 2023.
{{cite web}}:|first=missing|last=(help); line feed character in|title=at position 16 (help)CS1 maint: url-status (link) - ↑ 14.0 14.1 14.2 14.3 Jubilee Australia Research Centre, The Australia Institute, The Environment Centre NT (March 2021). "Barossa Area Development Offshore Project Proposal Submission to the Japan Bank for International Cooperation" (PDF). Retrieved August 11, 2023.
{{cite web}}: line feed character in|title=at position 51 (help)CS1 maint: multiple names: authors list (link) CS1 maint: url-status (link) - ↑ 15.0 15.1 15.2 Kulovic, Nermina (September 21, 2022). "Disappointed Santos halts Barossa drilling plans after court revokes permit". Offshore Energy. Retrieved August 10, 2023.
{{cite web}}: CS1 maint: url-status (link) - ↑ 16.0 16.1 16.2 16.3 "Santos' LNG-Linked Barossa Pipeline Project Suffers New Setback". Energy Intelligence. 2023-01-25. Retrieved 2023-08-10.
- ↑ 17.0 17.1 17.2 17.3 17.4 "Indigenous Owners Welcome Delay Order For Barossa Pipeline". www.rigzone.com. Retrieved 2023-08-10.
- ↑ "Santos Loses Court Appeal But Says Barossa Remains on Track". Energy Intelligence. 2022-12-02. Retrieved 2023-08-10.
- ↑ 19.0 19.1 19.2 "Santos ordered to delay construction of proposed Barossa gas pipeline after surprise HQ inspection". NT Independent. Retrieved 2023-08-10.
- ↑ Environmental Defenders Office (January 24, 2023). "Australian Government gas regulator halts Barossa gas pipeline construction". Environmental Defenders Office. Retrieved August 11, 2023.
{{cite web}}: CS1 maint: url-status (link) - ↑ Santos. "Darwin Pipeline Duplication (DPD) Project – EPBC Referral Supporting Information" (PDF). Department of Agriculture, Fisheries and Forestry. Retrieved September 1, 2023.
{{cite web}}: CS1 maint: url-status (link) - ↑ 22.0 22.1 Institute for Energy Economics and Financial Analysis (June 2023). "Darwin Pipeline Duplication Project Submission to the Northern Territory Environmental Protection Authority" (PDF). Retrieved September 1, 2023.
{{cite web}}: CS1 maint: url-status (link) - ↑ 23.0 23.1 Santos (2021). "Darwin Pipeline Duplication (DPD) Project NT EPA Referral" (PDF). Department of Agriculture, Fisheries and Forestry. Retrieved September 1, 2023.
{{cite web}}: CS1 maint: url-status (link) - ↑ 24.0 24.1 24.2 "Australia's Santos to spend extra $311 mln for Barossa-Darwin gas pipeline". Reuters. Retrieved 2023-09-01.
