Pullout from gas search deals ‘major blow’ but TGS’ CO2 storage assessment hailed as ‘game-changer’

The alleged withdrawal of the Norway-based energy data and intelligence company TGS from natural gas exploration in Victoria’s Otway Basin off the coast of Australia has been perceived as a blow to the state’s energy security as the gas supply dwindles. On the other hand, the launch of the U.S. Gulf Coast CO2 storage assessment package is described as an essential data bundle necessary for planning and executing carbon sequestration strategies in the rapidly evolving landscape.

TGS’ decision to cease its search for a new gas supply in Otway Basin is seen as “a major blow” to Victoria’s energy security, which Australian Energy Producers, representing Australia’s upstream oil and gas exploration and production industry, believe will compound looming gas shortfalls in eastern Australia. 

While pointing out that TGS’ exit showcases the increasingly difficult regulatory and investment environment in Australia, Samantha McCulloch, Australian Energy Producers’ Chief Executive, underlined: “Victoria is facing gas supply shortfalls from 2027 and already came close to running out of gas during peak periods this winter. With Victorian gas production declining rapidly, immediate action is needed to find and develop the new gas supplies so crucial to eastern Australian homes and businesses. 

“Instead, we are seeing increased regulation, long delays to project approvals, and the continued demonisation of gas by the Victorian Government, including the recent decision to force all households to replace gas appliances with electric ones. This is scaring off investment and delaying urgently needed new gas supply which will only increase the risk of blackouts, disruptions and higher energy bills. Decision-makers must recognise that capital is global and mobile, and Australia is fast losing out to other countries that are actively supporting investment.”  

Furthermore, the Australian Competition and Consumer Commission’s latest quarterly gas inquiry report showed eastern Australia was facing peak period gas shortfalls from the following year, and structural shortfalls from 2027. McCulloch said activists targeting TGS’ planned seismic surveys were at odds with the science and misrepresented a proven technology.

McCulloch underscored: “Without further exploration and development, future gas shortfalls are almost inevitable. Seismic surveys are a safe and essential technology used in Australia and around the world for more than 60 years. It is the same technology used by the offshore wind industry, and the independent national regulator NOPSEMA has found seismic surveys to be safe for the marine environment.

“The Greens and activists want to stop all new gas developments, with no regard for the devastating impact on Australia’s economy and energy security. A recent independent report by EnergyQuest found the Greens’ policy to ban new gas investment would trigger ‘major economic disruption’ on both coasts of Australia, leading to a high risk of blackouts, manufacturers closing and inevitably higher energy prices in a decade.” 

Meanwhile, TGS disclosed the Gulf Coast CO₂ storage assessment spanning 70 million acres across the Texas and Louisiana Gulf Coast with data from 9,000 wells and evaluations of 22 key geologic formations, offering what the firm has described as essential insights that streamline storage evaluations and guide strategic decisions.

Carel Hooijkaas, EVP of New Energy Solutions at TGS, underlined: “This assessment package is a game-changer for the industry, providing unparalleled data coverage and expert analysis to identify the most viable reservoir and seal formations for CO₂ storage. Leveraging our extensive well log library and deep subsurface expertise, we are uniquely positioned to support carbon sequestration efforts across the Gulf Coast and beyond.”

The Gulf Coast CO₂ Storage Assessment is said to be strategically aligned with the recent Texas General Land Office (GLO) CCS lease sale along the Texas coast, providing data opportunities for carbon storage evaluation with comprehensive formation top and petrophysical interpretations. These findings are deemed to be seamlessly integrated into advanced workstation environments, equipping decision-makers with actionable information for informed strategic planning.

ExxonMobil recently obtained access to over 271,000 acres of offshore CO2 storage in Texas state waters, thanks to a lease with the GLO. TGS elaborates that its initiatives feature a well-structured stratigraphic framework, comprehensive petrophysical analysis, visual log curves, and extensive regional mapping of storage properties and volumetric visualizations.

The firm’s coverage expansion to the Gulf Coast and neighboring regions such as Arkansas, Mississippi, and Alabama is presented as a way to equip stakeholders with the essential data necessary for planning and executing carbon sequestration strategies in the rapidly evolving landscape.

TGS recently assisted in enabling Petronas to find a new oil and gas discovery, wrapped up its assignment to advance exploration efforts in the Norwegian Sea, and landed a new deal in the Southern Atlantic.

A few weeks ago, the company did an ultra-high-resolution 3D (UHRD3D) survey on behalf of Community Offshore Wind in the New York Bight to enable soil condition data to guide the design of an offshore wind project.

At the end of September 2024, TGS pooled resources with Aker BP to digitalize the area where the latter is developing one of its big new projects in the North Sea.