Castex, Carbonvert execute operating agreement for CO2 storage hub offshore Louisiana

Sept. 19, 2023
Castex Energy subsidiary Castex Carbon Solutions and Carbonvert have executed an operating agreement with the State of Louisiana to develop a 24,000-acre tract of land offshore Cameron Parish, La., to permanently store carbon dioxide.

Castex Energy Inc. subsidiary Castex Carbon Solutions LLC and Carbonvert Inc. have executed an operating agreement with the State of Louisiana to develop a 24,000-acre tract of land in State waters offshore Cameron Parish, La., for a carbon capture and storage (CCS) project. 

Based on technical and subsurface studies by Castex, the Cameron Parish CO2 Hub has a total storage capacity of more than 250 million metric tons of carbon dioxide (CO2) and will service the region’s existing industrial emitters and anticipated greenfield projects, notably ammonia and LNG plants, the companies said in a joint release Sept. 19.

The joint venture partners are also exploring opportunities to repurpose existing pipeline infrastructure to support the carbon capture and storage project.

In August 2022, the companies executed a 50-50 joint venture agreement to jointly identify and advance CCS projects in Louisiana. Castex will serve as operator for the Cameron Parish CO2 hub.