Page 4 - NorthAmOil Week 22 2022

NorthAmOil COMMENTARY NorthAmOil

US carbon capture

projects advance

There has been a series of announcements relating

to carbon capture and storage projects in the US in

recent weeks as oil and gas companies increasingly
embrace the technology

US CARBON capture and storage (CCS) develop- participation agreement with its partners in the
ment is picking up pace, in the US and globally. Cameron LNG project on development of a CCS
WHAT: The technology, also known as carbon capture, facility for capturing emissions from the termi-
CCS projects are utilisation and storage (CCUS), has been around nal. The agreement forms the basis for the com-
advancing in the US. for some time and was historically more likely to panies to enter into a joint venture with Sempra
be used for enhanced oil recovery (EOR). Now, for the project, which is known as Hackberry
WHY: though, it is beginning to emerge as a major Carbon Sequestration (HCS) and would capture
A growing number of oil component of decarbonisation plans, both on emissions both from the existing Cameron LNG
and gas companies are the national level and on that of individual oil plant and its planned expansion.
turning to CCS in a bid to and gas companies. The plan also illustrates another trend – that
decarbonise while still For the energy industry, CCS represents an of LNG developers pursuing CCS alongside
producing hydrocarbons. opportunity continue producing oil and gas their import terminals. Other LNG producers
while reducing emissions. The technology has on the US Gulf Coast are also seeking to add
WHAT NEXT: come under fire from critics, though, who have CCS capacity to existing liquefaction facilities,
The effectiveness cited underperformance of certain existing while several proposed LNG projects that have
of CCS as a tool for projects, among other factors, as reasons to be yet to reach the final investment decision (FID)
decarbonisation still sceptical over its decarbonisation potential. stage also have plans to use CCS for addressing
needs to be proved. Nonetheless, with oil and gas unlikely to be fully their emissions.
replaced by renewables and other cleaner forms The Gulf Coast is also the location of other
of energy anytime soon, CCS will remain a key planned CCS developments that would see the
piece of the puzzle when it comes to balancing region become a major carbon capture hub.
demand with decarbonisation. Talos Energy has been a major player in this
The US is by far the leader in both existing Gulf Coast push, with stakes in four planned
and proposed CCS projects globally, and recent CCS projects, including one planned for the
weeks illustrate that momentum is building Freeport LNG facility in Texas.
as more and more companies join the push to Last week, Talos finalised an expanded joint
develop carbon capture capacity. venture to develop the Bayou Bend CCS pro-
ject offshore Texas, with Chevron entering the
CCS push existing partnership that also includes Car-
Among the recent CCS-related announcements bonvert. Under the agreement, Chevron has
coming out of the US is Sempra Infrastructure’s taken a 50% stake in the project, leaving Talos

P4 www. NEWSBASE .com Week 22 02•June•2022