Talos Energy Inc., Houston, and EnLink Midstream LLC executed a memorandum of understanding to jointly develop a complete CO2 capture, transportation, and sequestration system for industrial-scale emitters in Louisiana.
The offering is focused on one of the highest CO2 emitting regions in the US which emits about 80 million metric tonnes/year of CO2, the companies said in a joint statement Feb. 16. The Mississippi River corridor from New Orleans to Baton Rouge alone accounts for nearly two-thirds of the total industrial emissions in Louisiana. Emitting sources include ammonia, hydrogen, methanol, and base chemical facilities as well as refinery and other petrochemical infrastructure.
The service will use significant portions of EnLink's existing regional pipeline infrastructure of about 4,000 miles in Louisiana and Talos's recently acquired River Bend carbon capture and storage (CCS) site in east Louisiana.
EnLink and Talos have begun to market the offering to potential customers.
River Bend carbon CCS site
In a separate release Feb. 16, Talos detailed an agreement with a large landowner that will allow for multiple sequestration sites near EnLink's existing pipelines. This agreement includes sequestration rights to about 26,000 surface acres in Iberville, St. James, Assumption, and Lafourche Parishes. The acreage comprises three strategically located sites along the Mississippi River industrial corridor known collectively as the River Bend CCS project.
Talos and EnLink believe the area provides the necessary structural geology and rock properties for CO2 sequestration, providing cumulative capacity of over 500 million metric tonnes. Talos has also secured a right of first refusal on about 63,000 additional acres in the area for phased, future expansion.
Talos will be the project manager and operator of the injection, storage, and monitoring and will be joined by its partner, Storegga Ltd.
EnLink's existing pipeline infrastructure
EnLink and its predecessors have a long history of pipeline and processing operations in Louisiana. EnLink has identified existing pipelines to be utilized for CO2 transportation from emissions sources in the Geismar, Donaldsonville, Plaquemine, and St. Charles areas.
Due to optionality and redundancy in EnLink's large pipeline network in the region, EnLink does not anticipate a material impact to its existing natural gas business from the repurposing of identified pipelines to CO2 service.