Eni is reviewing plans to develop a gas field in the Timor Strait area, north of Australia, due to concerns about CO2 emissions. The project has been judged to be extremely emissions-intensive and Eni is examining alternatives to reduce the environmental impact.
The gas in the field has a high CO2 content and if developed, could be the highest in Australia. Eni is considering alternative solutions to treat CO2 before releasing it into the atmosphere, in line with Australian laws.
Eni: fears over emissions from Timor Strait gas field
The giant of oil resources Eni is reviewing its multimillion-dollar development plans for a new gas field in the Timor Strait north of Australiajudged ‘extremely emissions-intensive’ according to a report by the Institute of Energy Economics and Financial Analysis (IEEFA). This was reported by the Australian national broadcaster ABC, citing an Eni spokesperson, who confirmed that the company was now “reviewing alternative development concepts, all aiming to minimize the project’s environmental footprint. A Front End engineering design will begin when pre-feasibility studies are completed and following full engagement with all stakeholders, in particular the Australian and Northern Territory Governments,” he added.
Last year the company said it was targeting a final investment decision on its gas field at Verus, 330km northwest of Darwin’s northern port. And the gas has a high Co2 content, averaging 27%. If developed the deposit would be at the highest carbon intensity in Australia, according to a 2023 report by Ieefa, which called the project “a carbon bomb”.
The most carbon-intensive emissions
According to the institute, Estimated emissions could amount to at least 7.5 million tonnes of CO2 per year, without counting the emissions produced when the gas is turned on by end customers. According to the data and analysis body for the energy transition Wood Mackenzie, cited by the broadcaster, the high carbon content of Verus gas poses significant challenges for Eni.
“Clearly it is a risk for the environment: we don’t want to release all that CO2 into the atmosphere” – says the organization’s research analyst Anne Forbes. Australian law requires that CO2 be treated: it cannot be released into the atmosphere. For Eni there are solutions, but they are all expensive and will add costs to the project, because in a world where there is a lot of focus on reducing emissions, the company ended up with one of the most emitting gas fields.
Source: Ansa
