XOM’s recent acquisition of DEN for nearly $5 billion firmly places the buyer and its low carbon solutions business as a leader in carbon capture, utilization and storage (CCUS). Its dominant position is even more apparent in southern Louisiana where DEN was very active in securing midstream partnerships and storage sites around its Green and NEJD CO2 pipelines. XOM is now a midstream and/or storage partner in nine of the 22 announced CCUS project in southern Louisiana, as well as being the owner and operator of the only CO2 pipelines in the region. Its CCUS participation includes storing at least 48 mtpa of the 84 mtpa of total planned storage in the area. This does not include volumes related to recent storage announcements for its Libra and Virgo projects that currently do not have annual storage targets.
Current throughput for XOM’s Green pipeline is about 4 mtpa, only 25% of the 16 mtpa capacity. The remaining capacity, however, is far from enough to satisfy the demands of the rapidly expanding southern Louisiana CCUS market. If all announced capture and storage projects in the area go through, at least 50 mtpa of additional transportation capacity will be needed by 2030. Expansion of XOM’s existing CO2 infrastructure and the addition of new CO2 pipelines through new builds or repurposing existing pipelines and rights of way will need to happen in relatively short order to meet project timelines.
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