Oxy Low Carbon Ventures (OLCV) and NextDecade Corporation today announced they signed a term sheet for the offtake and permanent geologic storage of CO2. In fact, this project is aimed at NextDecade’s planned Rio Grande LNG project in the port of Brownsville, Texas.
Furthermore, the Company unveiled earlier this month its new subsidiary, Next Carbon Solutions. Accordingly, this unit will develop one of the largest carbon capture and storage (CCS) projects in North America at Rio Grande LNG.
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Oxy Low Carbon Ventures and NextDecade Corporation: new CCS agreement
This Tuesday, Occidental Corporation and NextDecade Corporation (the latter through its subsidiary Next Carbon Solutions) announced they signed a term sheet for the offtake and permanent storage of CO2 at NextDecade’s planned Rio Grande LNG project.
In fact, NextDecade unveiled its subsidiary earlier this month and is expected to develop one of the largest CCS projects in North America through the Rio Grande project. Furthermore, the Company expects to assess the benefits associated with the co-development of the LNG and the CCS projects.
Therefore, the firm anticipates the final investment decision on a minimum of two liquefaction trains at Rio Grande LNG; while sanctioning the CCS project soon after.
Accordingly, Oxy Low Carbon Ventures (OLCV) will offtake and transport CO2 from the Rio Grande LNG project. Besides, it will permanently sequester it in an underground geologic formation in the Rio Grande Valley. However, a CO2 Offtake Agreement and a Sequestration and Monitoring Agreement are still to be negotiated by the two players.
OLCV is Oxy’s subsidiary focused on advancing cutting-edge, low-carbon technologies and business solutions. Therefore, the Company aims to enhance the parent company’s business while reducing emissions.
Besides, the subsidiary invests in the development of low-carbon fuels and products. Also, the Company provides sequestration services to support carbon capture projects globally.
“We are pleased to be working with OLCV to design, construct and operate a CO2 pipeline and permanent storage facility in South Texas”; said Matt Schatzman, NextDecade chief executive Officer.
In fact, “OLCV’s expertise and reliability complement the transformative and impactful contributions our Next Carbon Solutions business; is making to the global energy industry. Besides, in particular, the proprietary processes we are advancing to lower the cost of utilizing CCS technology.”
Moreover, NextDecade expects its proposed 27 million tonnes per annum Rio Grande liquefaction project to be the “largest and greenest US LNG export solution” linking Permian Basin and Eagle Ford shale natural gas to the global LNG market.
“We are excited to partner with NextDecade to enable the supply of low-carbon natural gas to international markets. Hence, signing this agreement is an important milestone in scaling up OLCV’s pure sequestration business. Besides, in providing services to help others achieve their net-zero goals;” said Richard Jackson, Occidental’s president, operations US onshore resources and carbon management.
Furthermore, “the CO2 sequestration facility for South Texas is a great example of the many sequestration hubs that OLCV plans to develop across the United States. Indeed, eventually around the globe.”