Denbury, Gulf Coast Midstream to team on Texas CO2 storage

Carbon-focused US energy company Denbury said November 4 it had signed a letter of intent with a midstream company in Texas to explore work on a permanent CO₂ storage facility near Houston.

The subsidiary Denbury Carbon Solutions signed the agreement with Houston-based Gulf Coast Midstream Partners (GCMP) to take up to 50% equity ownership in a CO₂ sequestration project under development by the Texas company.

Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. ngc.co.tt

Denbury already operates a pipeline in the region that can carry CO₂. The project under development by GCMP could store as much as 400mn metric tons of CO₂ and initial injection rates are estimated at 1.5mn mt/yr.

“Denbury’s world-class CO₂ transportation infrastructure and CO₂ management skill set are an ideal complement to GCMP’s underground storage development and operations expertise,” said GCMP CEO John Hooper. “Together, GCMP and Denbury are well-positioned to offer a bundled CO₂ transportation and permanent sequestration service to meet the evolving needs of the carbon capture sequestration market.”

GCMP already started pursuing some of the necessary permits to move the project forward. If sanctioned, the company expects to have total CO₂ storage capacity of 400mn metric tons installed by early 2025.

Denbury under a similar agreement reached in September with Mitsubishi said it would transport and sequester the CO₂ captured from the Japanese company’s planned ammonia site along the Gulf Coast, which Denbury said it could either store or use for enhanced oil recovery operations.