Houston-based Talos Energy Inc., which is expanding its scope beyond exploration and production to carbon capture and storage (CCS), has a preliminary agreement with Freeport LNG Development LP to sequester emissions on the Upper Texas coast.

Reducing the carbon intensity of liquefied natural gas (LNG) exports has become paramount for U.S. operators in the broad energy transition. Talos has multiple alliances to advance its CCS strategy in partnership with UK-based Storegga Geotechnologies Ltd., which is partnering in the Freeport project. Last June Talos and Carbonvert Inc. secured another CCS site in Jefferson County, east of Houston. 

“The entrepreneurial collaboration of our teams allowed for the development of a unique, stand-alone carbon sequestration solution, which provides proof of concept to our broader CCS portfolio and is complementary to our larger hub-based project in Jefferson County,” Talos CEO Timothy S. Duncan said. “It also illustrates the creative solutions that Talos and Storegga can offer to potential CCS project partners.”

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The letter of intent, if finalized, would site the CCS project about 60 miles southwest of Houston. The project would be adjacent to Freeport LNG’s natural gas pretreatment facilities. Carbon dioxide (CO2) injections could begin by the end of 2024. 

If the project were to begin injections by the end of 2024 as planned, it could be “the very first active carbon sequestration project on the Gulf Coast,” Duncan added.

Further Reducing Carbon Intensity At Freeport LNG 

Freeport LNG CEO Michael Smith said, “As the only all-electric drive facility of its kind in the U.S., our liquefaction facility produces 90% less emissions than other gas turbine-driven facilities. Embarking on carbon capture and sequestration will only further reduce the carbon intensity of our facilities.”

The Talos-Freeport project comes on the heels of the news that Jera Co. Inc., Japan’s largest power producer, is paying $2.5 billion for a 25.7% stake in the  LNG facility. Freeport is in the process of adding a fourth train to the facility, which would expand gas liquefaction capacity to more than 20 million metric tons/year (mmty).

The CCS project to permanently sequester CO2 would use a Freeport LNG-owned geological sequestration site that is less than a half mile from point of capture. The site would allow injections over 30 years.

“Storegga and Talos have built a strong partnership that leverages the expertise of each company for the rapid, cost-effective delivery of CCS clusters in the U.S. Gulf Coast region,” Storegga CEO Nick Cooper said. “We expect that this will be the first of several such projects from the Talos-Storegga partnership to serve Gulf Coast industrial CO2 sources and to contribute meaningfully toward net zero in the United States.”

The project benefits “from a dedicated source of CO2 and a secured injection site in close physical proximity and, therefore, has limited commercial barriers and a rapid execution timeline assuming efficient regulatory approval processes,” the companies said.

In addition, the site is “within 25 miles” of up to another 15 mmty of incremental CO2 emissions “from major industrial sources, which offers the potential for expansion in the future.”