Energy Transfer LP, Dallas, has signed a revised letter of intent (LOI) with CapturePoint LLC and affiliate CapturePoint Solutions LLC that provides for the joint development of a carbon capture and storage (CCS) project in Louisiana.
The companies also signed a definitive offtake agreement committing up to 2 million tonnes/year (tpy) of CO2 from Energy Transfer’s Haynesville natural gas treating infrastructure to CapturePoint’s Central Louisiana Regional Carbon Storage Hub (CENLA Hub). The agreement provides Energy Transfer the right to participate in a joint venture that will own and operate the hub and provides a framework for the companies to collaborate on CO2 capture and sequestration from other Energy Transfer infrastructure in Louisiana.
CapturePoint has contracted for over 20,000 acres of deep underground geologic carbon storage space in the CENLA Hub. Currently, the Louisiana Department of Natural Resources is reviewing permit applications for CENLA Hub Class VI CO2 injection sites in Vernon and Rapides Parishes. Each permit would allow for up to 6 CO2 injection wells storing about 1 million tpy of CO2, with a maximum total of 7.5 million tpy of CO2 stored.
In August 2022, Energy Transfer and CapturePoint signed a LOI for a feasibility study for the project, proposing that Energy Transfer capture CO2 from its affiliated natural gas infrastructure in the Haynesville and build and operate a pipeline to the CENLA Hub storage sites. CapturePoint would build and operate capture services for third-party Haynesville infrastructure as well as develop the sequestration sites where the captured CO2 would be stored up to 2 miles underground.
