Commonwealth LNG Inks CCS MOU With Carbonvert and Castex JV

The captured carbon dioxide will be permanently sequestered in the Cameron Parish CO2 Hub to be located offshore Louisiana.

Carbon capture technology concept with Carbon dioxide cloud and absorbing surface on dark blue
Source: inkoly/Getty Images

Commonwealth LNG and OnStream CO2 have teamed up on a carbon capture and storage project at the Houston-based energy company’s 9.3-mtpa liquefied natural gas (LNG) facility in Cameron Parish, Louisiana.

Onstream CO2, a joint venture between Carbonvert and Castex Carbon Solutions, will design, construct, own, and operate carbon dioxide (CO2) capture equipment near the Commonwealth LNG site. The captured CO2 will be permanently sequestered at the Cameron Parish CO2 Hub.

The joint venture partners announced the hub on 19 September when they executed an operating agreement with the State of Louisiana to store CO2 in a 24,000-acre tract in state waters offshore Cameron Parish.

The project will be the state’s first offshore CO2 storage hub. With more than 250 million metric tons of CO2 storage capacity, the hub will service a region with a high concentration of existing industrial emitters and anticipated greenfield projects, notably ammonia and LNG facilities.

"Commonwealth's commitment to our storage site is a great first step and instills confidence in the Lake Charles industrial corridor to launch CO2 capture initiatives and enhance resilience amidst carbon-related global trade requirements and customers' increasing demand for low-carbon products,” said Alex Tiller, Carbonvert founder and CEO.

Commonwealth said it will dedicate the CO2 emissions from the LNG facility to the hub for a 20-year term.

"Adding carbon capture technology complements our comprehensive goal of achieving best-in-class environmental standards through measures that also include a focus on responsibly sourced gas and the installation of the highest-efficiency gas turbines,” said Paul Varello, Commonwealth LNG founder and executive chairman.

Castex will serve as the operator for the Cameron Parish CO2 Hub.

"We are pleased to work with Commonwealth LNG to achieve the shared vision of safely, permanently, and economically reducing CO2 emissions,” said Aaron Killian, Castex EVP and CFO. “OnStream's tailored CO2 capture, transportation, and storage solution will allow Commonwealth LNG to achieve key environmental initiatives while focusing on its core LNG business."

According to Commonwealth, a final investment decision on the LNG project is expected in the first half of 2024, with the first cargo deliveries expected in 2027. The company said it could achieve an accelerated construction schedule by using a modular approach with major components being fabricated offsite.

The energy company said in September that it had entered into a Heads of Agreement with Pittsburgh-based EQT for 1 mtpa of LNG under a 15-year tolling agreement.

In August 2023, the company announced a strategic agreement with Baker Hughes to work together to maximize output and reduce emissions using Baker Hughes LM9000 aeroderivative gas turbine technology. Commonwealth also announced that it had agreed with Kimmeridge on terms for a 20-year, 2-mtpa LNG offtake commitment from the LNG export facility.

According to Commonwealth, the final terms of the carbon capture arrangement with OnStream CO2 remain subject to the negotiation of a definitive agreement between the parties.