Sonali Paul

MELBOURNE, (Reuters) – Chevron Corp (NYSE) has only about half of its Gorgon carbon capture-and storage (CCS), project in Australia. A senior executive stated that the company does not have a time frame for meeting targets and is currently working at just half capacity.

Three years after its completion, the world’s biggest CCS project is under close scrutiny by the global gas industry. Carbon capture and storage are essential to ensure that producers meet their net zero emission targets for 2050.

Gorgon CCS was originally slated for completion by the end of last year, when it faced its first 5-year rolling assessment. It was instead forced to purchase carbon credits because it failed to meet its goals of burying the emissions from Gorgon liquefied LNG plant.

The goal of the project was to place 4 million tonnes annually of carbon dioxide (CO2), but it managed only 2.1 million tonnes.

In an interview with Reuters, Chevron Australia’s director for operations Kory Judd said that “we still have a way to go to fulfill the commitment to what our injection system is designed for.” He spoke to Reuters ahead of the Australian Petroleum Production and Exploration Conference.

“What we are doing is trying learn how to inject carbon dioxide into the reservoirs. What do they do? How can you make sure that it happens reliably. Then how can you meet the obligations that you have?”

He stated that CO2 injection systems were reliable.

“It is just scaling it that we’re working towards.”

Judd indicated that Judd would work alongside the Western Australian Government to continue offering offsets in an effort to compensate for the annual deficit.

He didn’t say how much Chevron spent on 5 million offsets of greenhouse gases that were surrendered for the Gorgon partners. These include majors. Exxon Mobil Corp (NYSE) and Shell

Australian Carbon Credit Units shot up to A$57 per Tonne when Chevron purchased offsets. The offsets at those prices would have cost over A$250 millions, but many offsets weren’t bought on Australia’s market.

Chevron continues to explore other CCS opportunities, both in Australia and overseas, despite the difficulties that the A$3Billion ($2 Billion) project offshore the coast of Western Australia presented. Only in Southeast Asia BP plc, Pertamina in Indonesia and Petronas Malaysia work on CCS Plans.

Judd explained that CCS was a crucial component in achieving the 2050 Aspirations.

($1 = 1.4489 Australian dollars)