ExxonMobil signs offshore carbon capture lease for 271,000 acre site

Supermajor says deal is largest offshore carbon dioxide storage lease ever signed in US

ExxonMobil chief executive Darren Woods, speaks at the 23rd World Petroleum Congress on Monday 6 December 2021 in Houston.
ExxonMobil chief executive Darren Woods, speaks at the 23rd World Petroleum Congress on Monday 6 December 2021 in Houston.Photo: CREATIVEEVENTIMAGES/UPSTREAM

ExxonMobil has struck a deal with Texas regulators to lease 271,000 acres in state waters for potential carbon dioxide storage, the US supermajor said Thursday.

Terms of the deal, which ExxonMobil claimed is the largest CO2 storage lease ever inked in the US, were not disclosed.

The space is located off the southeast coast of Jefferson, Chambers and Galveston counties, just east of Galveston Bay.

The company’s lease is with the Texas General Land Office, which manages surface and mineral rights for both public lands and state waters. Oil and gas royalties generated from those lands and waters are directed to the Texas Permanent School Fund, which diverts funds to the state’s public schools.

ExxonMobil and state officials hailed the lease as a win for the environment and for the Texas school system. The supermajor said the space is “ideal for CO2 storage”.
The Texas lease is part of an expanding carbon capture and storage (CCS) division for ExxonMobil, which pushed its efforts into overdrive last year when it closed a $4.9 billion deal for carbon capture developer Denbury. The acquisition added 1300 miles of CO2 pipelines and 15 onshore CO2 storage sites to ExxonMobil’s portfolio.

ExxonMobil has CCS offtake agreements with CF Industries, Nucor and Linde, along with a CCS technology alliance with Mitsubishi Heavy Industries. The company is also planning to expand its CCS efforts at its LaBarge natural gas field in Wyoming.

“This is yet another sign of our commitment to CCS and the strides we’ve been able to make,” Dan Ammann, president of ExxonMobil’s low carbon solutions division, said in a statement.

“With our growing roster of customers ready to deploy CCS, we’ll be driving substantial emissions reductions along the Gulf Coast through a comprehensive solution that includes capture, transportation, and storage — capabilities that make us a clear leader.”

(Copyright)
Published 10 October 2024, 15:28Updated 10 October 2024, 15:28
ExxonMobilExxonMobil Low Carbon SolutionsDan AmmannUSTexas