Santos chief says fossil fuel bans adding to energy security woes

“To achieve this, we need investment in both new supply to support our existing energy system as well as the decarbonisation projects that will enable an orderly transition, rather than the chaos we are seeing today.

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“And to all those people who call for an end to fossil fuels – they are just adding to the problem, as that’s only going to delay decarbonisation. The future must be about decarbonisation, not de-fossilisation.”

He said for Australia to prosper and continue to invest in new energy sources, governments must maintain a stable and sustained regulatory and policy environment.

“We need our overseas investors to have certainty. Without it, the ramifications are frightening,” he said.

Natural gas has long been touted as a “transition” fuel for economies dependent on coal for their power needs, as it has lower carbon dioxide emissions than coal but requires similar centralised infrastructure, and gas-fired power stations take only a couple of years to build. But climate experts warn the transition to renewable energy cannot afford to be slowed to limit global heating to 1.5 degrees.

Santos, which has pledged to achieve net-zero emissions in its business by 2040, has attracted major criticism from environmental and climate groups and over claims of “greenwashing” its clean energy credentials.

Shareholder activist group the Australasian Centre for Corporate Responsibility launched the case in the Federal Court last year, alleging the company had engaged in misleading or deceptive conduct relating to its “clean energy” claims and its net zero plan.

The company has put carbon capture and storage at the centre of its decarbonisation push. The method has been backed by governments and the oil industry internationally but has yet to make meaningful dents in global emissions despite billions of dollars of taxpayer investment.

Gallagher said the company’s Moomba project, a joint venture with fellow gas company Beach Energy about 800 kilometres north of Adelaide, was about 20 per cent complete with major groundwork to begin later this year. The project aims to capture 1.7 million tonnes of carbon dioxide every year, with the first injection is expected in 2024.