NextDecade Corporation and Occidental subsidiary Oxy Low Carbon Ventures (OLCV) have signed a term sheet for the offtake and permanent geologic storage of carbon dioxide captured from NextDecade’s planned Rio Grande liquefied natural gas project in the Port of Brownsville, Texas.
NextDecade earlier this month unveiled its own subsidiary - Next Carbon Solutions – that is expected to develop one of the largest carbon capture and storage (CCS) projects in North America at Rio Grande LNG.
The CCS project at Rio Grande LNG is expected to enable the capture and permanent geologic storage of more than five million tonnes of CO2 annually.
To realise the synergies associated with co-development of the LNG and the CCS projects, NextDecade anticipates this year taking the final investment decision on a minimum of two liquefaction trains at Rio Grande LNG and sanctioning the CCS project soon after.
Vast storage capacity
OLCV will offtake and transport CO2 from the Rio Grande LNG project and permanently sequester it in an underground geologic formation in the Rio Grande Valley, where there is vast such storage capacity, pursuant to a CO2 Offtake Agreement and a Sequestration and Monitoring Agreement to be negotiated by the two players.
“We are pleased to be working with OLCV to design, construct and operate a CO2 pipeline and permanent storage facility in South Texas,” said Matt Schatzman, NextDecade chief executive Officer.
“OLCV’s expertise and reliability complement the transformative and impactful contributions our Next Carbon Solutions business is making to the global energy industry, and in particular the proprietary processes we are advancing to lower the cost of utilizing CCS technology.”
The proposed 27 million tonnes per annum Rio Grande liquefaction project is being touted by NextDecade as expected to be the “largest and greenest US LNG export solution” linking Permian Basin and Eagle Ford shale natural gas to the global LNG market.
“We are excited to partner with NextDecade to enable the supply of low-carbon natural gas to international markets. Signing this agreement is an important milestone in scaling up OLCV’s pure sequestration business and providing services to help others achieve their net zero goals,” said Richard Jackson, Occidental’s president operations US onshore resources and carbon management.
“The CO2 sequestration facility proposed for South Texas is a great example of the many sequestration hubs that OLCV plans to develop across the United States and eventually around the globe.”
OLCV is focused on advancing cutting-edge, low-carbon technologies and business solutions that enhance the parent company’s business while reducing emissions.
The subsidiary also invests in the development of low-carbon fuels and products, as well as sequestration services to support carbon capture projects globally.