Lucid Energy Group laid out plans on Jan. 11 to develop the largest carbon capture and storage (CCS) project in the Permian Basin.

“Since our entry to the Delaware Basin five years ago, Lucid has targeted investments in large-scale gas treating assets, which empower our customers to develop highly economic drilling locations with associated off-spec gas,” Lucid CEO Mike Latchem commented in a company release.

Based in Dallas, Lucid Energy Group is the largest privately held natural gas processor in the Permian Basin. The company’s gathering and processing system is centered in the northern Delaware Basin, strategically located in the two most active counties in the Lower 48—New Mexico’s Eddy and Lea counties.

Lucid’s strategy has proven beneficial for all stakeholders, according to Latchem who said Lucid currently removes more CO₂ from Permian Basin shale production than any other midstream operator.

“In turn, Lucid is the perfect candidate to develop the largest CCS project in the Permian Basin by simply modifying and expanding our existing operations,” he added.

Lucid Current Assets Alongside CO2 Pipeline in the Permian Rextag Data Map
Data courtesy of Rextag. For more information about Rextag and to see the data for yourself, connect with Tyler Reitmeier at treitmeier@hartenergy.com.
Lucid Energy Group Asset Map
Lucid Energy Group Asset Map (Source: Lucid company website)

On Jan. 11, Lucid said it received EPA approval for the company’s previously submitted monitoring, reporting and verification (MRV) plan for the sequestering of CO₂ from its Red Hills gas processing complex. Located in Lea County, Lucid’s Red Hills facility is the largest gas processing complex in the Permian Basin, according to the company website.

The MRV plan documents Lucid’s means of safely ensuring permanent CCS of CO₂ removed from the natural gas stream during the processing and treating of natural gas from its customers, which it said totals more than 50 producers in New Mexico and West Texas.

The company added that the plan is scalable and provides growth capacity. It is expected to also provide section 45Q tax credits for the sequestration and permanent storage of CO₂ in Lucid’s existing and permitted disposal wells.

Lucid is supported by growth capital commitments from Riverstone Holdings LLC and Goldman Sachs Asset Management. The company’s assets consist of more than 2,000 miles of pipeline in operation, approximately 150,000 of operating hp compression and 1.2 Bcf of natural gas processing capacity in operation or under construction, the Lucid website said.

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