Energy company Western Midstream announced the signing of a letter of intent with an Occidental Petroleum subsidiary for projects that capture, transport, utilize and sequester carbon dioxide.
The target regions for the (potentially) multiple projects are the Colorado DJ Basic and the Delaware Basin where Western Midstream already have existing infrastructure.
The main focus is said to be the delivery of low-carbon oil and natural gas products to end customers. Western will be doing feasibility studies on installing carbon capture facilities on the natural gas plants it owns and operates, while Occidental will do the same for both oil and gas facilities.
There are three directions in which the CO2 transported by Western will go to – permanent sequestration sites, effectively eliminating the impact of the gas on the atmosphere; enhanced oil recovery, which will reduce extraction cost; utilization in other industrial processes or as a commodity for other industries.
The partnership could grow considerably, as Occidental already has high hopes for its carbon management services. The company has been positioning itself as the first to market in this area even before the Inflation Reduction Act came into the picture.
“We look forward to working with Western to jointly identify and implement innovative and cost-effective solutions to help reduce carbon emissions in our operations in the Delaware and DJ Basins,” said Richard Jackson, president, US Onshore Resources and Carbon Management Operations at Occidental.