A unit of US LNG player Sempra and its partners in Cameron LNG have signed a deal to develop the proposed Hackberry carbon capture and sequestration project in Louisiana.
Sempra Infrastructure said in a statement on Monday it has signed a participation agreement with TotalEnergies, Mitsui & Co., and Mitsubishi to develop the Hackberry Carbon Sequestration (HCS) project.
The deal contemplates that the combined Cameron LNG Phase 1 but also proposed Phase 2 export projects would potentially serve as the anchor source for the capture and sequestration of carbon dioxide (CO2) by the HCS project.
Also, it provides the basis for the partners to enter into a joint venture with Sempra Infrastructure for the project, the firm said.
Last year, the HCS project filed an application for a Class VI Injection well permit from the US Environmental Protection Agency for permanent storage of up to 2 million tonnes per annum of CO2.
Sempra Infrastructure said the development of the project remains subject to a number of risks and uncertainties, including signing additional project-related agreements, securing all necessary permits, and reaching a final investment decision.
“Cleaner LNG”
“We are excited to advance the development of the Hackberry Carbon Sequestration project, the first of Sempra Infrastructure’s net zero solutions projects, to help Cameron LNG produce cleaner LNG for its customers,” said Justin Bird, CEO of Sempra Infrastructure.
“This project is expected to be among the first North American carbon capture facilities designed to receive and store CO2 from multiple sources, and our goal is for this facility to set the gold standard for safe and permanent CO2 storage, Bird said.”
Sempra recently said that it expects to take a final investment decision to expand its Cameron LNG export plant in Louisiana in 2023.
Last month, Sempra Infrastructure entered into a heads of agreement with its partners in Cameron LNG for the expansion project.
Moreover, Cameron LNG awarded two front-end engineering design (FEED) contracts to Bechtel and a joint venture between JGC America and Zachry Industrial.
Sempra holds 50.2 percent of Cameron LNG, the operator of the existing three-train 12 mtpa liquefaction facility.
The Cameron LNG Phase 2 export project includes building the fourth train with a capacity of about 6.75 mtpa.