Perenco UK and Carbon Catalyst Ltd (CCL) have won a license to progress the Poseidon carbon capture and storage (CCS) project from the North Sea Transition Authority’s (NSTA) first carbon storage competitive round ).
The Poseidon project encompasses the Leman gas fields, one of the largest geological structures in the southern North Sea sector of the United Kingdom Continental Shelf (UKCS). Leman offers a mix of depleted gas reservoirs and saline aquifers in which carbon dioxide can be permanently stored, Perenco said in a press release. Leman is connected via a pipeline to the PUK Bacton terminal, which will receive and process carbon dioxide from various land sources and send it ashore to be injected into reservoir rocks for geological storage.
The project, which is expected to become operational in 2029, “has the potential to significantly decarbonise both the east and south-east of England”, Perenco said. According to the release, initial carbon dioxide injection rates will be around 1.5 million metric tonnes per annum (mtpa), rising to 40 mtpa over a period of 40 years.
Perenco said the project will move to a more detailed assessment of storage sites as the company works with midstream and upstream partners. Perenco said the CCS license is “an exciting milestone” and formalizes the start of a new strategic division, the Perenco CCS Department, within the Perenco Group, targeting CCS projects in the UK and globally.
“This is a fantastic opportunity to leverage Perenco UK’s deep experience in gas operations by developing a project that will help support the UK’s energy transition, generate highly skilled jobs locally and nationally and actively facilitating the government’s NetZero targets We look forward to working with all stakeholders to deliver this strategic project,” said Perenco UK Managing Director Jo White.
“Poseidon has the potential to make a very material contribution to the decarbonisation of the UK economy by storing up to 40 million tonnes of CO2 per year in the giant depleted Leman gas field and the overlying aquifer system,” he said Henry Morris, Chief Executive of Carbon Catalyst. “CCL is looking forward to supporting Perenco as it moves through the evaluation period towards a final investment decision, with the ultimate goal of achieving first CO2 injection in 2029.”
Decommissioning progress in the North Sea
Meanwhile, the North Sea oil and gas industry spent $2.03 billion (GBP 1.6 billion) decommissioning redundant wells and infrastructure last year, more than in any of the previous five years, according to a recent report by the NSTA
Activity levels are expected to remain high, with the NSTA projecting around $2.54 billion (GBP 2 billion) to be spent annually on decommissioning over the next decade, which is “a massive opportunity to pursue developing skills and expertise in the basin and helping supply.” the chain wins lucrative contracts abroad strengthening its status as a [a] world leader,” the regulator said.
“The decommissioning sector in the North Sea is very active and productive, and the industry is ideally placed to realize the huge [$26.67 billion] GBP 21 billion opportunity that will present itself over the next 10 years,” said Pauline Innes, director of supply chain and decommissioning at NSTA. “However, operators need to redouble their commitment to working with the supply chain and plan even more effectively if they are to overcome difficult market conditions and remain cost competitive. The NSTA will continue to use its powers and influence to support the industry as it strives for continuous improvement, including through the development of new benchmarks.”
“It is critical that North Sea operators work together to ensure that oil and gas assets that, at the end of their useful lives, cannot be reused to support new technologies such as carbon capture and storage , be decommissioned safely and in the most cost-effective manner,” said Bob Fennell, Harbor Energy’s North Sea Executive Vice President. “Collaborating and sharing data is an important first step in providing the supply chain with the visibility and confidence they require to meet UK demand for these works in a timely and cost-competitive manner.”
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