Natural gas, a fuel for the future, is key to both meeting the growing energy needs of Australia and Asia, and reducing greenhouse emissions and improving air quality in our region.
As one of Australia’s leading suppliers of natural gas, Santos recognises the science of climate change and is committed to being part of the energy and climate solution.
Natural gas produces less than 50% the greenhouse gas emissions of coal when used to generate electricity.
Reliable and abundant in Australia, natural gas plays an important role in a low-carbon future on a standalone basis and as the perfect partner for renewable energy.
Reduction in greenhouse gas emissions attributable to the replacement of coal-fired generation by Santos’ natural gas exports alone is equivalent to over 15% of the whole of Australia’s 2030 greenhouse gas emissions target
If all of Australia’s forecast 85 million tonnes of LNG exports by 2020 replace legacy coal-fired power generation in Asia, Australian LNG will cut 300 million tonnes of global greenhouse gas emissions every year.
To put this in context, that’s three times the size of Australia’s 2030 annual emissions reduction target under the Paris Agreement.
We believe in transparently reporting our greenhouse gas emissions as well as our climate change strategy, governance, risks and metrics and targets, in line with the recommendations of the G20 Task Force on Climate-related Financial Disclosures (TCFD) recommendations, all in our 2019 Climate Change Report.
We continually assess a broad range of climate change risks and undertake scenario analysis. Our scenario analysis against the International Energy Agency (IEA) Energy Technology Perspectives 2017 shows that the company’s value and earnings are resilient under each of the IEA’s three scenarios: policy commitments under the Paris Agreement, limiting global temperature rise to 2 degrees Celsius and limiting average global temperature rise to below 2 degrees Celsius.
We are excited about the initiatives we have underway to reduce emissions across our operations and invest in the opportunities the low-carbon future presents.
Our 2019 Climate Change Report, released in early 2019, provides more information about fugitive emissions and how we effectively address these.
It also announced our medium-term targets to achieve these objectives, complementing our aspirational target of achieving net-zero emissions from our operations by 2050.
In 2017 Santos created Energy Solutions, a team dedicated to looking for opportunities to reduce our carbon footprint and prepare our business for a lower-carbon future.
Santos Energy Solutions has created an Australian-first, converting oil beam pumps to off-grid solar and battery in the remote Cooper Basin. Following this successful pilot, Santos plans to roll-out solar with battery storage across our Cooper Basin oil well fleet over the next couple of years, and ultimately, use this technology as the standard design for future wells.
Energy Solutions is also investigating the feasibility of a project to capture vented carbon dioxide from the Moomba processing plant to enhance oil production in the Cooper Basin. Success could result in the development of Australia’s first commercial-scale enhanced oil recovery project using carbon dioxide and contribute to a significant reduction in Santos’ CO2 emissions.