Freeport LNG Development LP and Talos Energy Inc have announced that the companies have executed a letter of intent to develop a carbon capture and sequestration (CCS) project, the Freeport LNG CCS project (FLNG CCS), immediately adjacent to Freeport LNG’s natural gas pre-treatment facilities located near Freeport, Texas, on the US Gulf Coast.
The companies anticipate first injection could occur by year-end 2024. Talos will be the project manager and operator and will be joined by its partner, Storegga Geotechnologies Ltd, the lead developer of the Acorn CCS project in the UK.
The FLNG CCS project will utilise a Freeport LNG-owned geological sequestration site located less than half a mile from point of capture with up to a 30-year injection term and will permanently sequester CO2. The FLNG CCS project benefits from a dedicated source of CO2 and a secured injection site in close physical proximity and, therefore, has limited commercial barriers and a rapid execution timeline assuming efficient regulatory approval processes. Additionally, the site is located within 25 miles of up to an additional 15 million metric tpy of incremental CO2 emissions from major industrial sources, which offers the potential for expansion in the future. The FLNG CCS project is still subject to execution of definitive agreements.
As one of the first LNG exporters in the US, Freeport LNG operates one of the largest LNG liquefaction and export facilities in the world, representing one of the largest single natural gas demand points in the state of Texas. Freeport LNG is in the process of adding a fourth train to the facility that will expand their gas liquefaction capacity to over 20 million tpy.
Talos has been chosen as the project manager and operator of the FLNG CCS project due to its expertise with conventional oil and gas geology, engineering and project delivery. The company is leveraging this expertise to rapidly become a leader in Gulf Coast CCS opportunities. Storegga is bringing its expertise in carbon management chains: specifically developing CCS storage projects and of enabling linked clusters of industrial CO2 sources. The FLNG CCS project follows numerous recent key developments in the company’s CCS portfolio including being named operator for the first and only major offshore CCS site in the US (Jefferson County, Texas General Land Office site) and entering a strategic alliance with TechnipFMC plc.
Storegga chief executive officer Nick Cooper commented: “Storegga and Talos have built a strong partnership that leverages the expertise of each company for the rapid, cost-effective delivery of CCS clusters in the US Gulf Coast region. We are delighted to join Talos and Freeport LNG in the Freeport CCS project. The FLNG CCS project has the potential to be storing CO2 by late 2024 and to scale up materially thereafter. We expect that this will be the first of several such projects from the Talos-Storegga partnership to serve Gulf Coast industrial CO2 sources and to contribute meaningfully towards net zero in the US.”
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