Valero Energy Corp. and BlackRock Global Energy & Power Infrastructure Fund III are partnering with Navigator Energy Services to develop a 5-million tonne/year (tpy) carbon capture pipeline system. The project’s initial phase is expected to include more than 1,200 miles of new CO2 gathering and transportation and permanent storage. Pending third-party customer feedback, the companies could expand the system to transport and sequester up to 8 million tpy.
Valero expects to become an anchor shipper by securing most of the initial available system capacity. Navigator is expected to lead construction and operation of the system, with startup set for late 2024. Navigator will conduct an open season to secure additional commitments for capacity not booked by Valero.
Navigator will work with each counterparty to install or connect the applicable carbon capture equipment to the pipeline at various receipt points in Nebraska, Iowa, South Dakota, Minnesota, and Illinois. The proposed system plans to transport liquefied CO2 through 6- to 16-in. OD pipeline for delivery to a central sequestration site contemplated for south-central Illinois and will be expandable if demand warrants.
The open season will run through 12 p.m., Central Time, Apr. 30, 2021.
