Enterprise Products Operating LLC (NYSE: EPD) and subsidiary of Occidental (NYSE: OXY), Oxy Low Carbon Ventures (OLCV) have signed a letter of intent (LOI) to work on a potential carbon transportation project on the Gulf Coast.
The joint venture is intended to provide CO2 transportation and sequestration solutions for heavy carbon emitters in Texas, particularly those in the industrial corridors from Houston to Port Arthur and Beaumont.
Enterprise’s leading position in the energy sector combined with OLCV’s invaluable expertise in carbon sequestration and subsurface characterization lends the project much promise.
The network for the aggregation and transportation of sequestered CO2 emission will be developed by Enterprise.
The company intends to use both new and existing pipelines along the Gulf Coast for this purpose.
Oxy, on the other hand, will be responsible for developing carbon sequestration hubs across the United States and on the Gulf Coast in particular.
Expectations are for some of these hubs to be anchored by direct air capture (DAC) plants.
Thanks to these hubs, the Enterprise and Oxy joint venture will be able to have an efficient carbon transportation infrastructure, as well as have access to high quality pore space.
Hence, heavy emitters will have more options to choose from when exploring different carbon management strategies.