As per reports, Chevron Corporation’s (CVX) system at the $54 billion Gorgon liquefied natural gas export plant in Australia missed a local government target to inject captured carbon dioxide underground. Global expectation and ambition to capture and store carbon dioxide is not working like it should, highlighting the challenges oil companies are facing to manage greenhouse gas emissions, questioning companies’ net-zero futures on the technology.
While Chevron has isolated almost 5 million tons of carbon dioxide since the capture project began in August 2019 but has fallen short of a target to capture an average of 80% of emissions in the first five years of the LNG facility’s operation. The company has buried only 30% of about 15 million tons of CO2 generated since Gorgon began producing gas in March 2016, oil industry publication Boiling Cold reported.
Oil and natural gas producers rely on carbon capture (CCS) to lower emissions as they face scrutiny from investors and governments. Gorgon’s multibillion-dollar CCS project has been surrounded with technical issues, including issues with its pressure management system, as per sources. Chevron’s plant is equipped to manage pollution that is produced from the offshore fields that feed the LNG facility. Instead of pouring CO2 into the atmosphere, it is pumped into a reservoir more than 2 kilometers underground.
Western Australia’s government insisted on the CCS facility as a condition for approving Gorgon, which is expected to run for four decades. Chevron has been requested details by the state’s regulator on details on why Chevron missed its target, also Western Australia’s Environment Minister Amber-Jade Sanderson is seeking a meeting with the company.
Dow 30 component Chevron Corporation (CVX), through its subsidiaries, engages in integrated energy, chemicals, and petroleum operations worldwide. To learn more about Chevron (CVX) and to track their progress please visit the Vista Partners Chevron Page.
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