NAVIGATOR LAUNCHES A NON-BINDING OPEN SEASON TO
SOLICIT INTEREST IN FIRM CAPACITY
Valero Energy Corporation (NYSE: VLO, “Valero”) and BlackRock
Global Energy & Power Infrastructure Fund III announced today
that they are partnering with Navigator Energy Services
(“Navigator”) to develop an industrial scale carbon capture
pipeline system (“CCS”). The initial phase is expected to span more
than 1,200 miles of new carbon dioxide gathering and transportation
pipelines across five Midwest states with the capability of
permanently storing up to 5 million metric tonnes of carbon dioxide
per year. Pending third party customer feedback, the system could
be expanded to transport and sequester up to 8 million metric
tonnes of carbon dioxide per year. Valero, the largest renewable
fuels producer in North America, is expected to become an anchor
shipper by securing a majority of the initial available system
capacity. Navigator is expected to lead the construction and
operations of the system and anticipates operations to begin late
2024. In the coming months, Navigator will seek additional
commitments to utilize the remaining capacity via a binding open
season process.
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The CCS project seeks to provide biorefineries and other
industrial participants a long-term, economic path to materially
reduce their carbon footprint while maximizing the value of their
end-product in a cost-effective manner that is safe for the
environment.
“This project demonstrates our leadership in energy transition
through innovation in renewables,” said Joe Gorder, Valero Chairman
and Chief Executive Officer. “We continue to expand our long-term
competitive advantage with investments to produce lower carbon
fuels.”
“We are very excited to partner with Valero and Navigator in the
development of this project,” said Mark Florian, Head of
BlackRock’s Global Energy & Power Infrastructure team, which
invests in essential, long-term infrastructure investments in the
energy and power sector and sits within BlackRock Real Assets.
“Carbon capture infrastructure is a key part of reducing global
carbon dioxide emissions, and we look forward to executing this
important project with high-quality industry partners and creating
a strong investment for our funds.”
“Now is the time for industry-leading market participants to
join forces to complete an environmentally focused midstream
project of this size and scale. Harnessing our collective resources
and strengths will create a unique infrastructure project that
changes the way carbon emissions are managed,” said Matt Vining,
Navigator’s Chief Executive Officer.
Proposed System Details
Navigator will work with each counterparty to install or connect
the applicable carbon capture equipment to the pipeline at various
receipt points in Nebraska, Iowa, South Dakota, Minnesota, and
Illinois. The proposed system plans to transport liquefied carbon
dioxide through the pipeline, ranging from 6” to 16” in diameter,
for delivery into a central sequestration facility contemplated to
be in south-central Illinois. The system is expected to have the
ability to expand materially if driven by demand.
Open Season
Prior to participating in the non-binding open season,
interested parties must execute a confidentiality agreement to
govern the receipt of the open season documentation. All potential
shippers must submit non-binding information by 12:00 p.m. Central
Time on April 30, 2021 as an expression of interest to continue in
the binding process. The Notice of Open Season is available on the
Project’s website at www.navigatorco2.com. More information about
the open season is also available by contacting Navigator’s Chief
Commercial Officer, Laura McGlothlin, at (214) 880-6003 or
lmcglothlin@nesmidstream.com.
About Valero
Valero Energy Corporation, through its subsidiaries
(collectively, “Valero”), is an international manufacturer and
marketer of transportation fuels and petrochemical products. Valero
is a Fortune 50 company based in San Antonio, Texas, and it
operates 15 petroleum refineries with a combined throughput
capacity of approximately 3.2 million barrels per day and 13
ethanol plants with a combined production capacity of approximately
1.69 billion gallons per year. The petroleum refineries are located
in the United States (“U.S.”), Canada and the United Kingdom
(“U.K.”), and the ethanol plants are located in the Mid-Continent
region of the U.S. Valero is also a joint venture partner in
Diamond Green Diesel, which owns and operates a renewable diesel
plant in Norco, Louisiana. Diamond Green Diesel is North America’s
largest biomass-based diesel plant. Valero sells its products in
the wholesale rack or bulk markets in the U.S., Canada, the U.K.,
Ireland and Latin America. Approximately 7,000 outlets carry
Valero’s brand names. Please visit www.investorvalero.com for more
information.
About BlackRock Real Assets
In today’s dynamic and complex global investing market,
BlackRock Real Assets seeks to help clients access real assets that
could help meet their investment goals by providing a distinct
range of well defined, outcome orientated strategies, along the
investment risk-return spectrum. BlackRock Real Assets’ dedicated
teams of industry and sector specialists deliver global reach, with
deep local expertise. They have decades of relevant experience, are
deeply embedded in their operating industries by sector and
geography and have developed strong partnership networks over time.
BlackRock’s culture of risk management, knowledge sharing and
investment discipline sets BlackRock Real Assets apart and
underpins all that they do. With over 390 professionals in 30
offices managing over US$60 billion in client commitments as of
December 31, 2020, BlackRock Real Assets partners with clients to
provide solutions tailored to individual portfolio needs such as
income, growth, liquid or balanced real assets outcomes.
About Navigator Energy Services
Headquartered in Dallas, Navigator Energy Services provides
comprehensive midstream services including product gathering,
transportation and storage. More information is available at
www.nesmidstream.com.
Safe-Harbor Statement
Statements contained in this release that state Valero’s or
management’s expectations or predictions of the future are
forward-looking statements intended to be covered by the safe
harbor provisions of the Securities Act of 1933 and the Securities
Exchange Act of 1934. The words “believe,” “expect,” “should,”
“estimates,” “intend,” “target,” “will,” “plans,” “forecast,” and
other similar expressions identify forward-looking statements. It
is important to note that actual results could differ materially
from those projected in such forward-looking statements based on
numerous factors, including those outside of the company’s control,
such as delays in construction timing and other factors. For more
information concerning factors that could cause actual results to
differ from those expressed or forecasted, see Valero’s annual
reports on Form 10-K, quarterly reports on Form 10-Q, and other
reports filed with the Securities and Exchange Commission and
available on Valero’s website at www.valero.com.
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Valero Contacts Investors: Homer Bhullar, Vice President
– Investor Relations, 210-345-1982 Eric Herbort, Senior Manager –
Investor Relations, 210-345-3331 Gautam Srivastava, Senior Manager
– Investor Relations, 210-345-3992
Media: Lillian Riojas, Executive Director – Media Relations and
Communications, 210-345-5002
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