US liquefaction plant developer NextDecade is teaming up with a unit of Occidental Petroleum for the offtake and storage of carbon dioxide captured from the proposed Rio Grande LNG export plant in Texas.
Under the term sheet, Oxy Low Carbon Ventures would offtake and transport CO2 from the LNG project and permanently sequester it in an underground geologic formation in the Rio Grande Valley, where there is vast CO2 storage capacity, NextDecade said.
NextDecade’s chief executive Matt Schatzman said the firm would work with OLCV to design, construct, and operate a CO2 pipeline and permanent storage facility in South Texas.
“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,” he said.
The new move follows last week’s announcement by the US firm on launching a new unit to develop a carbon capture and storage project at the proposed LNG export plant in Texas.
NEXT Carbon Solutions’ CCS project could reduce permitted CO2 emissions at Rio Grande LNG by more than 90 percent without major design changes to the facility, according to NextDecade.
Announcing a “pricing refresh” deal with engineering giant Bechtel earlier this month, NextDecade said it anticipates achieving a final decision on a “minimum of two trains” at Rio Grande LNG this year.
NextDecade said it would also take a FID on the CCS project after that.
The full-scope of the Rio Grande project includes five trains for a total capacity of 27 million tonnes per year.
