Italian resource giant Eni is reviewing multi-billion-dollar development plans for an extremely carbon-intensive new gas field in the Timor Sea.
Last year the company said it was aiming to reach a final investment decision on its Verus gas field — formerly known as Evans Shoal — 330 kilometres north-west of Darwin.
Verus’s gas contains a high makeup of carbon dioxide (CO2), with an average of 27 per cent.
If developed, it would be the most carbon-intensive gas field in Australia, according to a 2023 report by the Institute of Energy Economics and Financial Analysis (IEEFA), which labelled the project a “carbon bomb”.
IEEFA estimated Verus emissions could amount to at least 7.5 million tonnes of carbon dioxide per year, not counting the emissions produced when the gas is burnt by customers.
Eni confirmed to ABC Rural it was now “reviewing alternative Verus development concepts, all of them aiming to minimise the environmental footprint of the project”.
“The front-end engineering design will commence when pre-feasibility activities are completed and following the full alignment with all stakeholders involved, notably the Northern Territory and Australian governments,” an Eni spokesperson said.
High carbon dioxide content poses challenges
Wood Mackenzie senior research analyst Anne Forbes said the high carbon content of Verus’s gas posed significant challenges for Eni.
“Clearly that’s not very useful and it’s an environmental hazard — we don’t want to release that CO2 into the atmosphere,” Dr Forbes said.
“Australian legislation also now says that CO2 needs to be dealt with, it can’t be vented into the atmosphere.
“So there is a lot of CO2 that Eni needs to deal with; there are options but they’re all expensive, so it’s going to add capital cost onto the project.”
Dr Forbes said Eni would likely be assessing ways to reduce Verus’s emissions at the gas field and onshore.
“They could be looking at greener options for their LNG plant,” she said.
“So rather than a conventional process where a whole lot of gas is used for the energy source to make LNG, potentially they could be looking at an electric drive train LNG plant with green energy to run it.”
Carbon capture and storage proposal
Last year, Eni outlined plans to reduce Verus’s high CO2 content through a yet-to-be-established carbon capture and storage (CCS) project proposed by Santos, 500km west of Darwin in the Timor Sea.
Eni claimed it could produce “carbon-neutral LNG” for export through the CCS project by storing the CO2 separated from Verus’s gas in the depleted Bayu Undan reservoir, in which it holds an 11 per cent stake.
IEEFA energy analyst Kevin Morrison said CCS was unproven at large scale and the best way for Eni to minimise Verus’s environmental impact would be to “leave the gas in the ground”.
Mr Morrison said even if CCS was successful in reducing the carbon content before Verus’s gas was exported as LNG, carbon dioxide “would still be pumped into the atmosphere once the gas is burnt by Eni’s customers”.
“Eni has ended up with a problem child here, because in a world where there’s a lot of focus on reducing emissions, they’ve ended up with one of the most emissions-intensive gas fields that’s around.
“It comes as no surprise that Eni has put this project on the backburner.”
An underwater pipeline from the Verus gas field would run 100 metres parallel to Santos’s Barossa gas pipeline for much of its 381-kilometre length, according to a 2023 Eni presentation seen by ABC Rural.
The route of the Barossa gas pipeline has been the subject of significant concern to some traditional owners on the Tiwi Islands.
“We MUST respect this earth - it is all we have
Claudio Dametto - South Australia
“I will always Vote to Preserve Our World.
Liam McGregor - Western Australia
“A simple message that even a politician can understand
Felicity Crombach - Victoria
“Please show you care about our future generations!!
Phil Harmer - New South Wales
“Save our world , Life & health before profits.
Kerry Lillian - New South Wales
“Close down all coal mines and Do not mine gas . Make these Companies
Daniel Johnson - New South Wales
“We want carbon free energy!
Edan Clarke - New South Wales
“Feels good to be taking a voter action step
Beaver Hudson - New South Wales
“Great Initiative. Let’s Hold elected officials Accountable to their bosses, us!
John Paul Posada - New South Wales
“We need actions not words we need honest democratic govt We need a pm
Bob Pearce - South Australia
“Thank you for this great resource. I was feeling helpless. Even this small step
Silvia Anderson - Victoria
“If political parties continue receiving political donations, we will rarely have politicians working for
Dan Chicos - New South Wales
“I only vote for people who will take urgent action to restore a safe
Susie Burke - Victoria
“Current government is not representing the opinion of the majority of Australian to meet
Neil Price - Tasmania
“We are fighting to rescue our kids' future from those who seek to steal
Vanessa Norimi - Queensland
“No time to waste Now or Never My vote is for NOW
Rosalie White - Victoria
“I am only 9 but I already care
Ava Bell - New South Wales
“From New Lambton Uniting Church - Caring for our world is a moral imperative.
Niall McKay - New South Wales
“Our federal govt is an International climate Embarrassment - its about time they stepped
Oriana Tolo - Victoria
“Vote earth this time!
Sue Cooke - Queensland
“We are in one on the wealthiest countries in the world. we have the
rowan huxtable - New South Wales
“The climate Emergency is the public health opportunity and urgent priority of the 21st
Mike Forrester - Victoria
“If they want my vote they better act now
Barbara McNiff - New South Wales
“We need to act locally now for the earth. Our only home. Vote Earth
Anne Miller - New South Wales
“I often look at the places I've known all my life and see how
Jim Baird - New South Wales
“Strike one For people power!!! Democracy might prevail outside the current cronyism that faces
Lorraine Bridger - New South Wales
“Our federal politicians Are Afraid to make action on climate change a major election
Jennifer Martin - New South Wales
“climate election, let's go!
Fahimah Badrulhisham - New South Wales
“Great to see this website that is a focus on action for climate change
Lynette Sinclair - New South Wales
“Let’s show politicians and the Murdoch media that climate change is by far the
Jane Aitken - Australian Capital Territory
“If you want to stay in power You need to take action to stop
Jane Bulter - New South Wales
“We are all that stands between terminal climate change and the vulnerable. We are
Carol Khan - Queensland
“We need a Government that Believes this is real and not taking money from
Ken Gray - New South Wales
“I'm voting for my childrens future
Anneliese Alexander - New South Wales