A partnership led by Spain’s Repsol SA has clinched a contract with Texas officers to retailer carbon emissions offshore Corpus Christi in an space that covers greater than 140,000 gross acres of pore house.
In accordance with the undertaking sponsors, the offshore carbon seize and storage (CCS) undertaking can be close to greater than 35 million metric tons/12 months (mmty) of present industrial emissions “inside 100 miles of the storage websites,” and greater than 20 mmty of “anticipated greenfield undertaking emissions anticipated by 2035.”
“Corpus Christi is a strategic area for Repsol pursuing low carbon developments the place the Port of Corpus Christi performs a vital position for the trade,” Repsol’s David Ramos, director of Geological Low Carbon Options, mentioned. “This undertaking will present important contributions internationally as properly to assist develop our international low carbon portfolio.”
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Repsol owns a 40% stake within the offshore CCS partnership and is the operator. CCS knowledgeable Carbonvert Inc. additionally has 40% fairness, whereas Mitsui E&P USA LLC and Posco Worldwide Corp. every maintain 10%.
Negotiations with state officers are underway with closing phrases to be permitted by the Texas Faculty Land Board (SLB). Final month the SLB permitted leases for the Port Aransas North and Mustang Island tracts offshore Nueces County. Each tracts lie inside Repsol’s licensed seismic database. Based mostly on the subsurface geology of the world, Repsol expects the tracts to have a mixed storage capability of greater than 600 mmt of carbon dioxide (CO2).
Carbonvert CEO Alex Tiller mentioned the undertaking would enhance the regional economic system in South Texas, “instilling confidence in native industries to launch CO2 seize initiatives and improve resilience amid carbon-related international commerce necessities and clients’ rising demand for low-carbon merchandise.
“It additionally attracts native investments from sectors like blue hydrogen and sustainable aviation gas refining,” Tiller added.
Gulf Coast CCS
Carbonvert and Houston-based Talos Power Inc. in 2021 grabbed the only successful bid in a Texas Basic Land Workplace sale for the Bayou Bend CCS website in Jefferson County, southeast of Houston. Chevron Corp. has since joined the undertaking.
A number of extra big-dollar CCS initiatives are within the works for the Better Houston space, led by a $10 billion undertaking by ExxonMobil. Nevertheless, Corpus, with its substantial gasoline and oil manufacturing – and exports – is residence to a rising industrial sector.
Industrial pure gas-related initiatives in proximity to the CCS hub embody Cheniere Power Inc.’s Corpus LNG export undertaking, the place an enlargement of liquefied pure gasoline companies is underway. As well as, a large, 1.8 mmty ethane steam cracker close to Corpus is in operation by ExxonMobil and Saudi Fundamental Industries Corp.
Initiatives within the queue embody Enbridge Inc.’s proposal to develop a blue ammonia undertaking close to Corpus.
Different CCS hubs even have been proposed for South Texas, together with one by Enbridge and an Occidental Petroleum Corp. unit. Enbridge operates the Ingleside Power Middle close to Corpus, which hundreds round 25% of all Gulf Coast oil exports.
Mitsui additionally has mentioned constructing out CCS choices within the area. In April it added an upstream foothold within the Eagle Ford Shale of South Texas, with plans to serve LNG export demand, low-carbon ammonia and methanol manufacturing on the Gulf Coast, and potential CCS initiatives.
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