Talos Energy and Freeport LNG have executed a letter of intent to develop a carbon capture and sequestration (CCS) project immediately adjacent to Freeport LNG's natural gas pretreatment facilities located on Quintana Island, Texas. 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 companies anticipate first injection at the project, dubbed Freeport LNG CCS, by year-end 2024.
"The entrepreneurial collaboration of our teams allowed for the development of a unique, standalone carbon sequestration solution, which provides proof of concept to our broader CCS portfolio,” said Timothy Duncan, president and chief executive of Talos Energy. “It also illustrates the creative solutions that Talos and Storegga can offer to potential CCS project partners. We look forward to advancing this project with Freeport LNG and hope to successfully reach first injection within approximately 3 years, which would make this the very first active carbon sequestration project on the Gulf Coast.”
The CCS project will utilize 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 partners see a dedicated source of CO2 and a secured injection site in close physical proximity as important to a rapid execution timeline, assuming efficient regulatory approval processes. Additionally, the site is located within 25 miles of up to an additional 15 mtpa of incremental CO2 emissions from major industrial sources, which offers the potential for expansion in the future. The CCS project is still subject to execution of definitive agreements.
Freeport LNG represents one of the largest single natural gas demand points in the state of Texas. The LNG facility is in the process of adding a fourth train to the facility that will expand its gas liquefaction capacity to more than 20 mtpa.
“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 toward net zero in the United States,” said Nick Cooper, chief executive at Storegga.
Talos has been chosen as the project manager and operator of the Freeport LNG 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 enabling linked clusters of industrial CO2 sources. The Freeport LNG CCS agreement follows Talos being named operator for the first and only major offshore CCS site in the US and entering a strategic alliance with TechnipFMC.
