US midstream company Enterprise Products Partners and Oxy Low Carbon Ventures (OLCV), a subsidiary of Occidental, have signed a letter of intent to develop a carbon capture and storage (CCS) project on the Texas Gulf Coast.
The project, if it goes ahead, will serve emitters in the industrial corridors from greater Houston to Beaumont and Port Arthur, and will combine the expertise of both partners. Enterprise and OLCV have already started to explore the commercialisation of the project with customers.
Under the terms set out in the letter, Enterprise will develop the CO2 aggregation and transport network using its extensive existing pipeline network with new pipelines. Meanwhile, through its 1PointFive business unit, OLCV is developing sequestration hubs on the Gulf Coast and elsewhere in the US, some of which include direct air capture (DAC) facilities.
‘For many years, Enterprise and Oxy have successfully collaborated in developing traditional oil and gas projects. 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,’ says Jim Teague, co-chief executive officer of Enterprise’s general partner.
Richard Jackson, president, US Onshore Resources and Carbon Management, Operations at Occidental, adds that the project will help industrial emitters reach net zero goals and will enhance Oxy’s business value.