Equinor ASA has acquired a 25% percent stake in Bayou Bend CCS LLC, a carbon capture and sequestration project the company said is positioned to be one of the largest along the Texas Gulf Coast.
Bayou Bend is a joint venture between Chevron U.S.A. Inc., through its Chevron New Energies division, Talos Energy Inc., through its Talos Low Carbon Solutions division and Equinor. Equinor acquired its interests through the purchase of Texas Carbon 1 LLC, a subsidiary of Carbonvert. Chevron is the operator with 50% interest, and Talos holds 25% interest.
Financial terms of the acquisition were not disclosed.
Bayou Bend is being developed on 140,000 gross acres of pore space for permanent CO2 sequestration and gross potential storage resources of more than 1 billion metric tons. The project’s acreage includes nearly 100,000 gross acres onshore in Chambers and Jefferson Counties, Texas, and approximately 40,000 gross acres offshore Beaumont and Port Arthur, Texas.
“Commercial CCS solutions are critical for hard-to-abate industries to meet their climate ambitions while maintaining their activity. Entering Bayou Bend strengthens our low carbon solutions portfolio and supports our ambition to mature and develop 15-30 million tonnes of equity CO2 transport and storage capacity per year by 2035. Our experience from developing carbon storage projects can help advance decarbonization efforts in one of the largest industrial corridors in the US,” said Grete Tveit, senior vice president for Low Carbon Solutions in Equinor.
The project’s location near major industrial corridors in the Houston Ship Channel and Beaumont / Port Arthur area will provide a potential decarbonization option for industries such as refining, cement, steel, chemicals and manufacturing, according to the press release. Industrial emissions in the Texas Gulf Coast region are estimated to be approximately 100 million metric tonnes of CO2 per year.
“We continue to make significant progress in developing Bayou Bend, which we believe will be a premier regional carbon storage hub solution for Texas’ largest industrial region. Equinor is a welcomed addition to the partnership. Their experience and track record further enhance the joint venture, which is committed to developing safe, reliable, cost-effective lower carbon solutions while enabling continued economic growth,” said Robin Fielder, Talos executive vice president of low carbon strategy and chief sustainability officer.
Recommended Reading
Kinetik Closes Acquisition of Durango’s New Mexico Delaware G&P Assets
2024-06-25 - Kinetik Holdings closed a $765 million acquisition of Durango Permian LLC, deepening Kinetik’s footprint of gas gathering and processing assets in the Delaware Basin.
Whitecap Sells Stakes in Gas Processing Plants in Two Deals
2024-07-02 - In separate deals, WhiteCap Resources sold gas processing assets to Topaz Energy and Pembina Pipeline—a move that strengthens Pembina’s Western Alberta position, an analyst said.
CorEnergy Infrastructure Aims for June Emergence from Bankruptcy
2024-06-03 - CorEnergy said the sale of its MoGas and Omega pipelines and repayment of its secured debt encouraged stakeholders to approve recapitalizing the company’s balance sheet.
US Silica Investors OK Apollo’s $1.85B Take-private Deal
2024-07-16 - U.S. Silica stockholders approved a $1.85 billion all-cash deal with Apollo Global Management, a transaction that will take publicly traded proppant services provider private.
Crescent to Offer $750MM in Senior Notes to Settle SilverBow Debt
2024-06-13 - Crescent Energy intends to use the proceeds to fund the cash portion of its merger with SilverBow Resources and to repay SilverBow’s outstanding debt at the time of the transaction’s closing.