NextDecade, Oxy Low Carbon Ventures Agree on CO2 Transportation and Storage in South Texas
NextDecade Corporation, a clean energy company, and Oxy Low Carbon Ventures (OLCV), a subsidiary of Occidental and leader in carbon dioxide (CO2) management, 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, the companies announced.
“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 CEO.
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 tons 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 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.
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.
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