Page 13 - NorthAmOil Week 20 2022

NorthAmOil ENERGY TRANSITION NorthAmOil

BP, Linde team up on Texas CCS project

TEXAS SUPER-MAJOR BP has formed a joint venture It has already announced plans to create two
with industrial gas supplier Linde this week to large-scale hydrogen production facilities in the
develop a carbon capture and storage (CCS) UK, which together could produce up to 1.5 GW
facility in Texas. The firms are aiming for the of hydrogen by 2030.
15mn tonne sequestration facility in greater In addition to storing CO2 from Linde’s
Houston to begin operations in 2026. hydrogen plants, the company will also seek
The project will capture and store carbon additional customers in the Texas Gulf Coast
dioxide (CO2) from Linde’s hydrogen produc- industrial corridor.
tion facilities and potentially from its other facil- The project is one of several major CCS
ities in Texas. This will enable Linde to produce facilities to be proposed for the Texas Gulf
low-carbon hydrogen, which will be sold to Coast recently. In March, ExxonMobil
customers along its hydrogen pipeline network announced it was planning a hydrogen pro-
under long-term contracts. duction plant and a CCS project at its refining
Under the terms of the deal, BP has agreed and petrochemical site at Baytown. The pro-
to appraise, develop and permit the geological posed hydrogen facility would produce up to
storage sites for permanent sequestration of the 1bn cubic feet (28.3mn cubic metres) per day
CO2. Its trading and shipping business will also of blue hydrogen and would have the capacity
be used to contribute custom low-carbon solu- to transport and store up to 10mn tonnes per
tions to the project, such as renewable power and year (tpy) of CO2.
certified natural gas, as well as commodity trad- Meanwhile, earlier this month, Talos Energy,
ing and price risk management expertise. Chevron and Carbonvert signed a memoran-
The project will give BP a footprint in the dum of understanding (MoU) to jointly develop
growing CCS industry in the US, as the firm the Bayou Bend CCS offshore hub, which could
evaluates large-scale CCS and hydrogen oppor- potentially sequester 225-275mn tonnes of CO2
tunities at industrial clusters across the country. from industrial sources in the region.™

NEWS IN BRIEF

UPSTREAM and Barnett Gathering from its development As part of the acquisition, Jason and Tammy
plan in 2020. joined Diversified’s existing well retirement
ExxonMobil to sell Barnett with ExxonMobil subsidiaries in the Barnett subsidiary, Next LVL Energy. Nick will serve
As part of the agreement, all employees
as a plugging consultant during a transition
Shale assets for $750mn shale will receive full employment offers period.
with BKV. The sale is expected to close in the
NWP, Diversified’s second acquisition
ExxonMobil said today it signed an agreement second quarter of 2022. of a well retirement operation this year,
with subsidiaries of BKV for the sale of EXXONMOBIL, May 19, 2022 enhances Diversified’s ability to maintain and
operated and non-operated Barnett shale gas reduce already low well retirement costs by
assets in Texas for $750mn with additional Diversified Energy acquires eliminating 3rd-party margins, increasing
payments contingent on future natural gas control over the process and utilising excess
prices. additional asset retirement capacity to generate additional revenues.
“We are focused on delivering the most “I am very pleased to welcome the
competitive returns to our shareholders by company respected Nicholas family and employees
developing opportunities with the lowest of NWP to our Next LVL Energy team, and
cost of supply and further strengthening Diversified Energy acquired privately I remain excited about the growth of our
our industry-leading upstream position,” held Nick’s Well Plugging (NWP), further plugging operations,” Brad Gray, Diversified’s
said Liam Mallon, president of ExxonMobil expanding its internal well-retirement executive vice president and chief operating
Upstream. capacity. NWP is a well-established plugging officer said.
“Our subsidiaries have operated in the service provider headquartered in Warren, “This acquisition demonstrates our
Barnett shale safely and responsibly for nearly Ohio with a combined 50+ years of oil and commitment to responsibly retire our long-
two decades, and we are encouraged by BKV’s gas experience, including plugging oil and gas life, low-decline assets when the time comes.
plans to develop the resource in line with its wells across Appalachia. Asset retirement is an integral part of our
stated pathway to net zero greenhouse gas Following a 30-year career with business, and this acquisition strengthens our
emissions by 2025.” Haliburton, Orville “Nick” Nicholas partnered ability to safely and efficiently retire wells.
ExxonMobil removed the Barnett shale gas with his son, Jason Nicholas, and daughter, Our investments to vertically integrate well-
assets operated by its subsidiaries XTO Energy Tammy Angus, to found NWP in May 2010. plugging expertise and equipment enable

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