NextDecade, Oxy Low Carbon Ventures Sign Term Sheet for CO2 Transportation and Storage in South Texas
March 25 2021 - 4:45PM
Business Wire
NextDecade Corporation (NextDecade) (NASDAQ: NEXT), a clean
energy company accelerating the path to a net-zero future, and Oxy
Low Carbon Ventures (OLCV), a subsidiary of Occidental (NYSE: OXY)
and global leader in carbon dioxide (CO2) management, today
announced that they have executed a term sheet for the offtake and
permanent geologic storage of CO2 captured from NextDecade’s
planned Rio Grande LNG project in the Port of Brownsville,
Texas.
Earlier this month, NextDecade announced the formation of NEXT
Carbon Solutions, a wholly owned subsidiary that is expected to –
among other things – develop one of the largest carbon capture and
storage (CCS) projects in North America at Rio Grande LNG. NEXT
Carbon Solutions’ CCS project at Rio Grande LNG is expected to
enable the capture and permanent geologic storage of more than five
million tonnes of CO2 per year.
Under the terms of the agreement, 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 CO2 storage capacity, pursuant to a CO2
Offtake Agreement and a Sequestration and Monitoring Agreement to
be negotiated by the parties.
“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’s Chairman and 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.”
“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, U.S. 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.”
To realize the significant benefits associated with
co-development of Rio Grande LNG and the CCS project, NextDecade
anticipates achieving final investment decision (FID) on a minimum
of two trains at Rio Grande LNG in 2021 and FID on NEXT Carbon
Solutions’ CCS project soon after FID at Rio Grande LNG.
About NextDecade Corporation
NextDecade Corporation (NextDecade) is committed to providing
the world access to cleaner energy. NextDecade, through its wholly
owned subsidiaries Rio Grande LNG and NEXT Carbon Solutions, is
developing a 27 mtpa LNG export project in South Texas along with
one of the largest carbon capture and storage projects in North
America. The Rio Grande LNG project is expected to be the largest
and greenest U.S. LNG export solution linking Permian Basin and
Eagle Ford Shale natural gas to the global LNG market. NextDecade’s
common stock is listed on the Nasdaq Stock Market under the symbol
“NEXT.” NextDecade is headquartered in Houston, Texas. For more
information, visit www.next-decade.com.
About Oxy Low Carbon Ventures
Oxy Low Carbon Ventures, LLC (OLCV) is a subsidiary of
Occidental, an international energy company with assets in the
United States, Middle East, Africa and Latin America. OLCV is
focused on advancing cutting-edge, low-carbon technologies and
business solutions that enhance Occidental’s business while
reducing emissions. OLCV also invests in the development of
low-carbon fuels and products, as well as sequestration services to
support carbon capture projects globally. Visit
www.oxylowcarbon.com for more information.
NextDecade Forward-Looking Information
This press release contains forward-looking statements within
the meaning of U.S. federal securities laws. The words
“anticipate,” “contemplate,” “estimate,” “expect,” “project,”
“plan,” “intend,” “believe,” “may,” “might,” “will,” “would,”
“could,” “should,” “can have,” “likely,” “continue,” “design” and
other words and terms of similar expressions are intended to
identify forward-looking statements, and these statements may
relate to the business of NextDecade and its subsidiaries. These
statements have been based on NextDecade’s current assumptions,
expectations, and projections about future events and trends and
involve a number of known and unknown risks, which may cause actual
results to differ materially from expectations expressed or implied
in the forward-looking statements. These risks include
uncertainties about progress in the development of NextDecade’s LNG
liquefaction and export projects and the timing of that progress;
NextDecade’s final investment decision (“FID”) in the construction
and operation of a LNG terminal at the Port of Brownsville in
southern Texas (the “Terminal”) and the timing of that decision;
the successful completion of the Terminal by third-party
contractors and an approximately 137-mile pipeline to supply gas to
the Terminal being developed by a third-party; NextDecade’s ability
to secure additional debt and equity financing in the future to
complete the Terminal; the accuracy of estimated costs for the
Terminal; statements that the Terminal, when completed, will have
certain characteristics, including amounts of liquefaction
capacities; the development risks, operational hazards, regulatory
approvals applicable to the Terminal’s and the third-party
pipeline's construction and operations activities; NextDecade’s
anticipated competitive advantage and technological innovation
which may render its anticipated competitive advantage obsolete;
the global demand for and price of natural gas (versus the price of
imported LNG); the availability of LNG vessels worldwide; changes
in legislation and regulations relating to the LNG industry,
including environmental laws and regulations that impose
significant compliance costs and liabilities; NextDecade’s ability
to develop and implement carbon capture and storage or similar
technology to reduce anticipated carbon emissions from the
Terminal; the novel coronavirus pandemic and its impact on
NextDecade’s business and operating results, including any
disruptions in NextDecade’s operations or development of the
Terminal and the health and safety of NextDecade’s employees, and
on NextDecade’s customers, the global economy and the demand for
LNG; risks related to doing business in and having counterparties
in foreign countries; NextDecade’s ability to maintain the listing
of its securities on a securities exchange or quotation medium;
changes adversely affecting the business in which NextDecade is
engaged; management of growth; general economic conditions;
NextDecade’s ability to generate cash; compliance with
environmental laws and regulations; the result of future financing
efforts and applications for customary tax incentives; and other
matters discussed in the “Risk Factors” section of NextDecade’s
Annual Report on Form 10-K for the year ended December 31, 2020 and
other subsequent reports filed with the Securities and Exchange
Commission, all of which are incorporated herein by reference.
Additionally, any development of the Terminal remains contingent
upon completing required commercial agreements, acquiring all
necessary permits and approval, securing all financing commitments
and potential tax incentives, achieving other customary conditions
and making a final investment decision to proceed. The
forward-looking statements in this press release speak as of the
date of this release. Although NextDecade believes that the
expectations reflected in these forward-looking statements are
reasonable, it can give no assurance that the expectations will
prove to be correct. NextDecade may from time to time voluntarily
update its prior forward-looking statements, however, it disclaims
any commitment to do so except as required by securities laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20210325005935/en/
NextDecade Patrick Hughes phughes@next-decade.com +1
(832) 209-8131
Oxy Low Carbon Ventures Eric Moses eric_moses@oxy.com +1
(713) 497-2017
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