DALLAS, Feb. 15, 2022 /PRNewswire/ -- EnLink
Midstream, LLC (NYSE: ENLC) and Talos Energy Inc. (NYSE: TALO)
announced today that they have executed a memorandum of
understanding to jointly develop a complete carbon capture,
transportation, and sequestration (CCS) solution for
industrial-scale emitters in Louisiana. The joint service offering will be
focused on the Mississippi River corridor from New Orleans to Baton
Rouge, which is one of the largest concentrated sources of
carbon dioxide (CO2) emissions in the United States, and will utilize
significant portions of EnLink's existing regional pipeline
infrastructure of approximately 4,000 miles in Louisiana and Talos's recently acquired River
Bend CCS site in east Louisiana,
which includes approximately 26,000 acres of pore space and
provides sequestration capacity of over 500 million metric tonnes
in the area. EnLink and Talos have begun to market the offering to
potential customers.
"We are proud to offer with Talos a complete
CO2 capture, transportation, and sequestration
solution for customers in eastern Louisiana," said EnLink Chairman and CEO
Barry Davis. "We plan to utilize our
existing pipeline infrastructure and expertise in building
midstream infrastructure to provide cost-efficient transportation,
while reducing the environmental impact compared to new pipeline
construction. We believe we are uniquely positioned in this regard,
given the vast extent of our pipeline infrastructure in the region.
Talos not only brings sequestration sites in close proximity to our
pipelines, but also the downhole expertise to develop them. I
continue to be inspired by the speed and execution from our carbon
solutions teams, as we execute on our vision to become the future
of midstream and creating sustainable value for EnLink and our
unitholders."
"We are very happy to join forces with EnLink in the Mississippi
River corridor from New Orleans to
Baton Rouge to leverage their
infrastructure and operational reliability as a midstream solution,
initially focused on the River Bend CCS project in east
Louisiana," said Talos President and CEO Timothy S. Duncan. "EnLink owns the last-mile
pipe to most industrial emission sources in the region and will
complement Talos' expertise in conventional geology, subsurface
characterization, and track record of responsible operations. We
are excited to collaborate to provide a one-stop solution that will
lead to a simpler pricing model and, ultimately, accelerated
decarbonization in a key industrial emissions region."
Utilizing EnLink's Existing Pipeline
Infrastructure
EnLink and its predecessors have a long
history of pipeline and processing operations in Louisiana. EnLink has identified existing
pipelines to be utilized for CO2 transportation from
emissions sources in the Geismar,
Donaldsonville, Plaquemine, and St.
Charles areas. This existing pipeline infrastructure
provides a cost-efficient solution and greatly reduces the
environmental impacts compared to new pipeline construction in
environmentally sensitive areas. Due to optionality and redundancy
in EnLink's large pipeline network in the region, EnLink does not
anticipate a material impact to its existing natural gas business
from the repurposing of identified pipelines to CO2
service.
Talos Subsurface Expertise and Sequestration Sites
Talos has recently entered into an agreement with a large landowner
that will allow for multiple sequestration sites near EnLink's
existing pipelines. This agreement includes sequestration rights to
approximately 26,000 surface acres in Iberville, St.
James, Assumption, and
Lafourche Parishes. The acreage comprises three strategically
located sites along the Mississippi River industrial corridor known
collectively as the "River Bend CCS" project. Talos and EnLink
believe the area provides excellent structural geology and rock
properties for CO2 sequestration, providing cumulative
capacity of over 500 million metric tonnes. Talos has also secured
a right of first refusal on approximately 63,000 additional acres
in the area for phased, future expansion in order to meet expected
future market demand. In addition to this significant sequestration
acreage position, Talos will provide its subsurface operating
expertise and extensive knowledge of Gulf Coast geology. Talos will
be the project manager and operator of the injection, storage, and
monitoring and will be joined by its partner, Storegga Limited.
Eastern Louisiana Offers High Concentration of Emissions
Sources
The joint service offering is focused on one of the
highest CO2 emitting regions in the United States, which emits approximately
80 million metric tonnes of CO2 per year. The
Mississippi River corridor alone accounts for nearly two-thirds of
the total industrial emissions in Louisiana. The emitting sources include
ammonia, hydrogen, methanol, and base chemical facilities, as well
as refinery and other petrochemical facilities. Potential customers
are motivated to participate in carbon capture and sequestration to
reduce emissions and to potentially offer "blue" products and
participate in a low-carbon economy.
About EnLink Midstream
EnLink Midstream reliably
operates a differentiated midstream platform that is built for
long-term, sustainable value creation. EnLink's best-in-class
services span the midstream value chain, providing natural gas,
crude oil, condensate, and NGL capabilities. Our purposely built,
integrated asset platforms are in premier production basins and
core demand centers, including the Permian Basin, Oklahoma, North
Texas, and the Gulf Coast. EnLink's strong financial
foundation and commitment to execution excellence drive competitive
returns and value for our employees, customers, and investors.
Headquartered in Dallas, EnLink is
publicly traded through EnLink Midstream, LLC (NYSE: ENLC). Visit
www.EnLink.com to learn how EnLink connects energy to life.
About Talos Energy
Talos Energy (NYSE: TALO) is a
technically driven independent exploration and production company
focused on safely and efficiently maximizing long-term value
through its operations, currently in the
United States and offshore Mexico, both upstream through oil and gas
exploration and production and downstream through the development
of future carbon capture and storage opportunities. As one of the
Gulf of Mexico's largest public
independent producers, we leverage decades of technical and
offshore operational expertise towards the acquisition, exploration
and development of assets in key geological trends that are present
in many offshore basins around the world. With a focus on
environmental stewardship, we are also utilizing our expertise to
explore opportunities to reduce industrial emissions through our
carbon capture and storage initiatives along the U.S. Gulf Coast
and Gulf of Mexico. For more
information, visit www.talosenergy.com.
Forward-Looking Statements
This press
release contains forward-looking statements within the meaning of
the federal securities laws. Although these statements reflect the
current views, assumptions and expectations of our management, the
matters addressed herein involve certain assumptions, risks and
uncertainties that could cause actual activities, performance,
outcomes and results to differ materially from those indicated
herein. Therefore, you should not rely on any of these
forward-looking statements. All statements, other than statements
of historical fact, included in this press release constitute
forward-looking statements, including but not limited to statements
identified by the words "forecast," "may," "believe," "will,"
"should," "plan," "predict," "anticipate," "intend," "estimate,"
"expect," "continue," and similar expressions. Such forward-looking
statements include, but are not limited to, statements about future
results or growth of our CCS business, objectives, strategies,
expectations, and intentions, and other statements that are not
historical facts. These and other applicable uncertainties,
factors, and risks are described more fully in EnLink Midstream,
LLC's and EnLink Midstream Partners, LP's filings with the
Securities and Exchange Commission, including EnLink Midstream,
LLC's and EnLink Midstream Partners, LP's Annual Reports on Form
10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form
8-K. Neither EnLink Midstream, LLC nor EnLink Midstream Partners,
LP assumes any obligation to update any forward-looking
statements.
Investor Relations: Brian
Brungardt, Director of Investor Relations, 214-721-9353,
brian.brungardt@enlink.com
Media Relations: Jill
McMillan, Vice President of Strategic Relations &
Public Affairs, 214-721-9271, jill.mcmillan@enlink.com
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SOURCE EnLink Midstream, LLC