TotalEnergies to acquire CCS business from Talos Energy

March 18, 2024
TotalEnergies has agreed to acquire Talos Low Carbon Solutions LLC for about $148 million.

TotalEnergies E&P USA Inc. has agreed to acquire Talos Low Carbon Solutions LLC—Talos Energy Inc.’s entire carbon capture and sequestration (CCS) business—for a combined total of about $148 million, the companies said in separate releases Mar. 18.

After completion of the deal, expected later today, TotalEnergies will own a 25% share in Bayou Bend CCS LLC, alongside Chevron (50%, operator) and Equinor (25%). TotalEnergies will also own a 65% operated interest in Harvest Bend CCS LLC in Louisiana, and a 50% interest in Coastal Bend CCS LLC in Texas (OGJ Online, may 24, 2022).

The Bayou Bend project is a carbon transportation and storage solution for industrial emitters located in the Houston Ship Channel and Beaumont – Port Arthur region on the Texas Gulf Coast. The project lies near TotalEnergies’ Port Arthur refinery and petrochemicals assets in La Porte, which will be “instrumental for the reduction of direct emissions from our US operations,” said Patrick Pouyanné, chairman and chief executive officer of TotalEnergies, in a release Mar. 18.

Comprising licenses dedicated to CO2 storage, offshore and onshore, covering about 600 sq km, it could enable the storage of several hundred million tons of CO2, TotalEnergies said.

With Coastal Bend and Harvest Bend being sited farther away from TotalEnergies’ existing assets, the operator intends to sell its interest in the two projects after closing, it said.