Santos CEO Kevin Gallagher announced in an address to the Energy Club WA that a merger with Oil Search will have beneficial outcomes for future fuels.
Santos’ proposed merger with Oil Search will mean greater funding for clean energy ventures, Mr Gallagher said in his address to the Energy Club WA on Tuesday.
Mr Gallagher said the company’s growth projects not only reside in oil and gas now, but carbon capture and storage (CCS), and new fuels such as hydrogen.
Under the proposed merger, Santos’ portfolio of low-cost growth projects will double, providing strong cash flows to fund investments in fuels of the future.
Mr Gallagher said Santos is an industry leader in terms of having a credible and fundable emissions-reduction roadmap to for net-zero future by 2040.
“It is a roadmap based on increasing the use of renewables in our operations, increasing our energy efficiency, developing nature-based offset projects – and of course, very significant investments in large-scale carbon capture and storage projects,” Mr Gallagher said.
“The first project we are developing is our 1.7 million t per annum Moomba CCS project in South Australia.”
There is already great interest in Australian CCS and hydrogen investment from Japan and Korea, and Mr Gallagher said that no country was better placed to provide clean fuels and energy products.
“I see enormous opportunities for Santos, for our industry and for the nation through a new, large-scale CCS industry producing high-quality carbon credits, underpinned by the integrity of our world-class Clean Energy Regulator.”
Mr Gallagher said that natural gas, combined with CCS, is also the lowest-cost pathway to a zero-emissions hydrogen economy today.
Click here to view Mr Gallagher’s full speech.
For more information visit the Santos website.