Oxy, Enbridge Pondering Carbon Capture Hub in Corpus Area of South Texas – Natural Gas Intelligence

By Carolyn Davis

Natural Gas Intelligence , December 6, 2022


Enbridge Inc. and a subsidiary of Occidental Petroleum Corp. are in the early stages of developing a carbon capture hub in the Corpus Christi area of South Texas, an LNG and oil export hub and home to several petrochemical facilities.


Oxy Low Carbon Ventures (OLCV) and Calgary-based Enbridge signed a letter of intent to jointly develop a carbon dioxide (CO2) sequestration hub. The project “would provide a complete CO2 solution for area emitters through the development of a pipeline transportation system and sequestration facility,” the companies said.


No financial details were provided.


“We are excited to be partnering with OLCV to explore developing a large-scale CO2 transport and sequestration hub in the Corpus Christi area,” said Enbridge’s Colin Gruending, executive vice president of Liquids Pipelines.


“This is a unique opportunity for two organizations to pair complementary skill sets in a way that decarbonizes our own facilities and provides a platform for our industrial neighbors who are also seeking to reduce their emissions.”


Among other things, Enbridge operates the Ingleside Energy Center near Corpus that is capable of loading very large crude carrier vessels. It comprises 15.6 million bbl of storage and 1.5 million b/d of oil export capacity. Ingleside loads around 25% of all Gulf Coast oil exports.


Enbridge also has stakes in Gray Oak Pipeline LLC, which includes an oil conduit to transport volumes from the Permian Basin to its export site in South Texas.


OLCV has several CO2 capture projects on the drawing board. Oxy and subsidiary 1PointFive in August began construction of their first large-scale direct air capture (DAC) plant, which is set to begin sucking up CO2 from West Texas oil and gas developments by late 2024.


Last month the Houston independent also clinched an agreement with the historic King Ranch in South Texas to expand carbon capture opportunities. The privately held ranch, which runs across nearly 825,000 acres in South Texas alone, agreed to lease Oxy 106,000 acres in Kleberg County to support “large-scale” DAC projects.


OLCV President Jeff Alvarez said the joint project with Enbridge “will provide a practical decarbonization solution for industrial emitters. This collaboration will help accelerate the path to net zero not only for ourselves, but for other organizations who are exploring end-to-end solutions to capture, transport and permanently store CO2.”


Enbridge and OLCV plan to leverage their individual strengths to advance the sequestration hub and associated transportation infrastructure.


To that end, Enbridge would develop, construct and operate the pipeline facilities. OLCV would develop, construct and operate the sequestration facilities.


The hub is expected to provide CO2 solutions for Enbridge’s proposed facilities as well as other point source emitters in the Corpus Christi area.


Enbridge and OLCV would jointly market the CO2 pipeline transportation and sequestration services to other third-party CO2 point source emitters in the Ingleside and Corpus Christi areas.


Originally Posted on Natural Gas Intelligence

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