Oil and gas titan ExxonMobil has signed what it calls the biggest offshore carbon storage lease in the US for a site spanning 271,000 acres in Texas waters, in an area east of Galveston Bay.
This substantial deal, struck with the Texas General Land Office, will add further capacity to the vast network of carbon capture and storage (CCS) infrastructure developed by ExxonMobil along the US Gulf Coast.
Commenting on this major infrastructure leap, Dan Ammann, president of ExxonMobil Low Carbon Solutions, shared that this deal is yet another sign of the company’s commitment to CCS and the advances they’ve been able to make.
“With our growing roster of customers ready to deploy CCS, we’ll be driving substantial emissions reductions along the Gulf Coast through a comprehensive solution that includes capture, transportation, and storage—capabilities that make us a clear leader,” he added.
Under this agreement, the two partners will address not only the issue of carbon emissions, but they will also channel financial support for the public school system in Texas.
The Texas General Land Office is the regulatory organ in charge of the rights for surface and minerals in state waters and public lands in Texas. Any commissions received through the exploitation of these resources are directed towards the Texas Permanent School Fund, who then provides funding for the state’s public schools.
Showing their commitment to the acceleration of the energy transition, ExxonMobil has been advancing its portfolio of projects targeting carbon pollution.
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Last year, in a deal worth $4.9 billion, ExxonMobil acquired carbon capture developer Denbury, a strategic move that resulted in 15 new onshore carbon storage sites and 1300 miles of carbon pipelines being added to the comprehensive ExxonMobil CCS system.
Alongside a CCS technology partnership with Mitsubishi Heavy Industries, ExxonMobil’s current list of offtake clients includes CF Industries, Nucor, and Linde, as well as an agreement signed this week with New Generation Gas Gathering (NG3).
Going forward, the company will work on expanding its CCS operations at its LaBarge natural gas field located in Wyoming.
Read more: ExxonMobil Partners With NG3 For Carbon Capture, Transport And Storage
