Talos Announces Lease For Carbon Sequestration Project In LMR Industrial Corridor
Talos Energy Inc. announced February 15 that it had reached an agreement with a large Louisiana landowner to lease about 26,000 acres along the Mississippi River industrial corridor for future carbon capture and sequestration (CCS) projects. The same day, Talos announced in a separate press release its signing of a memorandum of understanding with EnLink Midstream LLC to provide integrated CO2 transportation solutions in the region.
These announcements mark the first major CCS project in the Baton Rouge / New Orleans area, known as the “River Bend CCS” project, and the first with an integrated midstream solution dedicated to permanent sequestration activities. Talos will be the project manager and operator of the injection, storage and monitoring and will be joined by its partner, Storegga Limited.
The lease covers approximately 26,000 acres leased in Iberville, St. James, Assumption and Lafourche parishes, one of the largest industrial regions in the United States , with approximately 80 million metric tons of CO2 emitted regionally per year. The one Hub-class sequestration project is composed of three distinct sites with a cumulative storage capacity of more than 500 million metric tons, identified collectively as River Bend CCS.
The company said the project “is located in a superior geologic fairway containing a 3,000-plus foot thick saline aquifer column with porosity and permeabilities ideal for sequestration activities.” Talos has also secured a right of first refusal on approximately 63,000 additional acres in the area for phased, future expansion in order to meet expected future market demand.
This project expands the Talos CCS portfolio to three sequestration projects, including two regional hubs and one point source, spanning the Texas and Louisiana Gulf Coast. Talos EVP–Low Carbon Strategy and Chief Sustainability Officer Robin Fielder said, “We are excited to announce this significant agreement establishing a major CO2 sequestration hub along the Mississippi River along with the new transportation infrastructure collaboration with EnLink Midstream. This combination of a large-scale, strategically located sequestration hub plus alignment across the value chain is positioned to deliver turn-key carbon removal solutions in one of the largest and most critical industrial regions in the United States.”
Talos President and CEO Timothy Duncan said, “I’m very proud of the progress our team has made in advancing Talos’s CCS business. … This project is unique because the Mississippi River corridor is such an important focus area for lowering industrial emissions, and by combining the right storage location and geology, real pipeline infrastructure and two credible and capable operators, the River Bend CCS project can be a model for optimizing those variables to achieve a successful integrated CCS project. We will also be advancing our previously announced projects in the coming year through important engineering and permitting phases while continuing to pursue additional opportunities throughout the Gulf Coast.”
As one of the Gulf of Mexico’s largest public independent producers, Talos Energy leverages decades of technical and offshore operational expertise toward the acquisition, exploration and development of assets in key geological trends that are present in many offshore basins around the world.
