Talos, Howard Energy Partner on Potential Port of Corpus Christi CCS Deal
The two companies will explore carbon capture solutions of various sizes over an initial 9-month evaluation period.
Talos Energy and Howard Energy Partners (HEP) have entered into an option agreement with the Port of Corpus Christi Authority to pursue commercial carbon capture and sequestration (CCS) opportunities on-site at the Port of Corpus Christi. The project will be known as the Coastal Bend Carbon Management Partnership and will undergo an initial 9-month evaluation period, where the parties will identify and mature CCS project solutions on port-owned lands.
A lease option agreement with the port encompasses about 13,000 acres for CCS project evaluation, with an initial goal to sequester 1 million to 1.5 million metric tons of CO2 per year of industrial emissions into saline aquifers using an estimated total storage capacity between 50 million and 100 million metric tons. Based on proof of concept and market demand, the parties may expand the project to regional-hub scale, with the capability to sequester between 6 million and 10 million metric tons per year of the 20 million metric tons per year of total regional emissions. HEP’s Javelina midstream system is directly connected to over half of the total regional emissions with around 60 miles of existing infrastructure situated for gathering activities throughout the port area.
“The Port of Corpus Christi is an incredibly important export hub for the United States, and our goal is to offer their large customer base an on-site decarbonization solution to help reduce the carbon intensity of those products shipped all around the world from right here in Texas,” said Timothy S. Duncan, president and chief executive at Talos. “Our collaboration with HEP adds midstream expertise and simplifies commercial terms while enhancing our operational capabilities, making this offering a logical choice for the many blue-chip companies operating in the Port of Corpus Christi today.”
Talos has been very active in the CCS space over the past year, securing deals for CCS projects near Port Arthur, Texas, with the owners of Freeport LNG, and on the Mississippi River between Baton Rouge, Louisiana, and New Orleans.
The Port of Corpus Christi is a major strategic export hub and one of the largest ports in the United States, accounting for over $200 billion of economic impact from around 7,000 vessel shipments annually. Port-related employment accounts for approximately 100,000 jobs in the Coastal Bend area. The Coastal Bend Carbon Management Partnership aims to provide the port's more than 200 customers with a turnkey CCS solution to participate in meaningful decarbonization efforts.