NextDecade, Occidental unit join forces on CO2 transport from Rio Grande LNG

US liquefaction plant developer NextDecade is teaming up with a unit of Occidental Petroleum for the offtake and storage of carbon dioxide captured from the proposed Rio Grande LNG export plant in Texas.

Under the term sheet, Oxy Low Carbon Ventures would offtake and transport CO2 from the LNG project and permanently sequester it in an underground geologic formation in the Rio Grande Valley, where there is vast CO2 storage capacity, NextDecade said.

NextDecade’s chief executive Matt Schatzman said the firm would work with OLCV to design, construct, and operate a CO2 pipeline and permanent storage facility in South Texas.

“OLCV’s expertise and reliability complement the transformative and impactful contributions our NEXT Carbon Solutions business is making to the global energy industry, and in particular the proprietary processes we are advancing to lower the cost of utilizing CCS technology,” he said.

The new move follows last week’s announcement by the US firm on launching a new unit to develop a carbon capture and storage project at the proposed LNG export plant in Texas.

NEXT Carbon Solutions’ CCS project could reduce permitted CO2 emissions at Rio Grande LNG by more than 90 percent without major design changes to the facility, according to NextDecade.

Announcing a “pricing refresh” deal with engineering giant Bechtel earlier this month, NextDecade said it anticipates achieving a final decision on a “minimum of two trains” at Rio Grande LNG this year.

NextDecade said it would also take a FID on the CCS project after that.

The full-scope of the Rio Grande project includes five trains for a total capacity of 27 million tonnes per year.

Most Popular

Cheniere takes FID on two more Corpus Christi LNG trains

US LNG exporting giant Cheniere has made a positive final investment decision to build two more midscale trains at its Corpus Christi LNG plant in Texas. The company has also issued full notice to proceed to Bechtel.

Golar progresses FLNG growth plans

Golar LNG said it had signed a final engineering study to confirm EPC price and delivery for a 5 mtpa MKIII FLNG.

Italian FSRU operator launches small-scale LNG service

Italy’s OLT Offshore LNG Toscana, the operator of the FSRU Toscana, has launched its small-scale liquefied natural gas service, enabling small vessels to load LNG at the FSRU.

More News Like This

NextDecade, Bechtel agree $9 billion EPC deals for two Rio Grande LNG trains

US LNG firm NextDecade and compatriot Bechtel have finalized EPC contracts worth $9.09 billion for the construction of the fourth and fifth trains and related infrastructure at the Rio Grande LNG facility in Texas.

Japan’s Jera seals US LNG supply deals

Japan's power firm and LNG trader Jera has signed 20-year agreements to buy up to 5.5 million tonnes per year of LNG from the United States. The deals include an SPA with Commonwealth LNG and the previously announced SPA with NextDecade, as well as heads of agreements with Sempra Infrastructure and Cheniere.

NextDecade, Jera seal 20-year LNG SPA

Japan's Jera has signed a 20-year deal to buy liquefied natural gas from the planned fifth train at NextDecade's Rio Grande LNG facility in Texas.

NextDecade’s Rio Grande LNG secures approval to build tug berth

NextDecade's Rio Grande LNG has secured approval from the US FERC to build a tug berth at the site of its LNG export terminal in Texas.