A Texas Business Court judge has dismissed antitrust charges against Exxon Mobil’s carbon pipeline subsidiary Denbury, while permitting a broader lawsuit over alleged unfair business practices to proceed.
The ruling, issued by Houston Division Judge Sofia Adrogué, determined that the Texas court lacked territorial authority to rule on antitrust claims occurring outside state borders, including in neighboring Louisiana.
The suit was filed by developer Clean Hydrogen Works, which is planning a $7.5 billion clean hydrogen and ammonia facility in Ascension Parish, Louisiana.
Clean Hydrogen Works alleges that following Exxon’s acquisition of Denbury, the company wrongfully revoked a pipeline connection contract for its 620-mile regional CO2 network, effectively blocking competitor access to critical regional transport infrastructure.
Exxon rejected claims of anticompetitive behavior, arguing the contract termination was a standard response to project delays and missed technical milestones by the developer.
Legal Dispute Moves Forward On Unfair Trade Practice Allegations
While the Texas court removed the out-of-state monopoly claims on jurisdictional grounds, Exxon still faces litigation regarding its commercial conduct and contract handling.
Legal analysis suggests the remaining unfair business practice claims will continue in Texas, while potential antitrust and pipeline access litigation may be refiled in Louisiana courts.
Industry analysts note that constructing alternative high-pressure carbon transport infrastructure carries immense capital costs, often exceeding $1 billion, giving legacy pipeline owners significant influence over regional market access.
Relevant: ExxonMobil Challenges EU Carbon Storage Mandates In International Dispute
The legal bottleneck occurs amid broader economic pressures for Gulf Coast clean energy initiatives, as developers balance stringent international low-carbon mandates against high infrastructure costs and evolving regional regulations.
Despite the ongoing legal proceedings, Clean Hydrogen Works confirmed its Ascension Parish clean fuels project remains active.
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