Oxy Low Carbon Ventures (OLCV) and Enterprise Products Operating LLC on April 25 executed a letter of intent to work toward a potential CO2 transportation and sequestration solution for the Texas Gulf Coast.
The joint project would initially be focused on providing services to emitters in the industrial corridors from the greater Houston to Beaumont/Port Arthur, Texas, areas. The initiative would combine Enterprise’s leadership position in the midstream energy sector with OLCV’s extensive experience in subsurface characterization and CO2 sequestration, according to a joint press release.
“We look forward to collaborating with Enterprise to develop a sequestration solution to help industrial emitters reach their net-zero goals,” Richard Jackson, Occidental president of U.S. onshore resources and carbon management and operations, said in the press release. “We believe that our low-carbon strategy enhances Oxy’s business value and creates a path to net zero for ourselves while providing organizations everywhere with the tools they need to achieve net-zero or net-negative emissions.”
Enterprise would develop the CO2 aggregation and transportation network utilizing a combination of new and existing pipelines along its expansive Gulf Coast footprint. OLCV, through its 1PointFive business unit, is developing sequestration hubs on the Gulf Coast and across the U.S., some of which are expected to be anchored by direct air capture facilities. The hubs will provide access to high quality pore space and efficient transportation infrastructure, bringing more options to emitters looking to explore viable carbon management strategies.
Both companies have begun exploring the commercialization of the potential joint service offering with customers.
“For many years, Enterprise and Oxy have successfully collaborated in developing traditional oil and gas projects," A.J. “Jim” Teague, co-CEO of Enterprise’s general partner, commented. “We are excited to evolve that relationship with OLCV to provide reliable and cost-efficient CO2 transportation and sequestration services to advance a low-carbon economy for the energy capital of the world.”
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