TN PETRÓLEO

Australia`s Santos Ltd. (STO.AU) said Thursday it has submitted a proposal for a A$700 million project to store carbon dioxide in underground reservoirs in South Australia.

Santos is seeking federal government funding and support for the demonstration phase of its Moomba Carbon Storage project, with the aim of creating a large scale storage hub capable of holding more than 400 million metric tons of carbon dioxide.

The oil and gas company said it is planning to sequester about one million metric tons of carbon dioxide a year in the development phase, commencing in 2010, but the proposal is still under consideration by the government.