Page 12 - NorthAmOil Week 02 2022

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deliver to both the MEH and ECHO terminals cost for Midland WTI AGC barrels, and to will provide section 45Q tax credits for the
will be the March 2022 contract. go one step further in standardising general sequestration and permanent storage of CO2
“This contract has been developed by transfers of WTI meeting the HOU quality in Lucid’s existing and permitted disposal
working with industry participants every step specifications in support of this contract.” wells.
of the way and marks an important milestone INTERCONTINENTAL EXCHANGE, January 13, The MRV plan documents Lucid’s means
in the development of the US Gulf Coast as 2022 of safely ensuring permanent carbon capture
the benchmark location for pricing US crude,” and storage (CCS) of CO2 removed from the
said Jeff Barbuto, Global Head of Oil Markets natural gas stream during the processing and
at ICE. ENERGY TRANSITION treating of natural gas from its customers. The
The futures contract terms state that the plan is scalable and provides growth capacity,
seller has the option to deliver to either the Lucid Energy Group receives enabling Lucid to offer a lower-carbon-
MEH or ECHO terminal, and buyers have the intensity service to its customers and reduced
ability to indicate their terminal of preference milestone approval from carbon footprint to its stakeholders.
in which to take delivery. In order to further “Since our entry to the Delaware Basin
facilitate trading between the terminals to EPA, plans to develop the five years ago, Lucid has targeted investments
create one large liquidity pool, during the first in large-scale gas treating assets, which
year Magellan and Enterprise have agreed to largest carbon capture and empower our customers to develop highly
transfer Midland WTI barrels between the economic drilling locations with associated
terminals for no charge if the barrels are not secure storage project in off-spec gas,” said Lucid CEO Mike Latchem.
delivered to the buyer’s preferred terminal, “This strategy has proven beneficial for all
and at $0.10 per barrel for all other WTI the Permian Basin stakeholders, as Lucid currently removes more
transfers meeting HOU quality specifications. CO2 from Permian Basin shale production
“Based on market feedback received during Lucid Energy Group, the largest privately held than any other midstream operator. In turn,
the development of the contract rules and natural gas processor in the Permian Basin, Lucid is the perfect candidate to develop the
specifications, it became clear that a solution today announced the US Environmental largest CCS project in the Permian Basin by
was needed to help ensure buyers were able Protection Agency (EPA) has approved the simply modifying and expanding our existing
to receive crude oil at the terminal of their company’s previously submitted monitoring, operations. We are committed to finding
choosing,” said Brent Secrest, executive vice reporting and verification (MRV) plan to safe, creative and effective ways to serve
president and chief commercial officer for sequester carbon dioxide (CO2) from its Red the growing needs of our customers while
the general partner of Enterprise Products Hills gas processing complex in Lea County, reducing our environmental footprint.”
Partners. “We are pleased to work with New Mexico. The plan, following subsequent LUCID ENERGY GROUP, January 11, 2022
Magellan to provide this flexibility at no approval by the Internal Revenue Service,

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