Gas Producer Talos Enters C02 Capture Business in Green Drive
(Bloomberg) -- Offshore oil and gas producer Talos Energy Inc. is entering the carbon-capture business, joining a growing list of major energy companies undertaking projects involving the use of greenhouse gas-reducing technology.
Talos formed a joint venture with U.K.-based Storegga Geotechnologies Ltd. to provide carbon capture and offshore storage for petrochemical and industrial facilities along the U.S. Gulf Coast, the two companies said in a statement on Tuesday. They estimated that geological formations under the Gulf of Mexico can hold more than 30 gigatons of carbon dioxide emissions.
“We have a responsibility to deliver affordable, reliable energy with the lowest carbon footprint possible, and this joint venture allows us to expand our impact beyond our own assets to provide solutions for removing emissions from critical industrial sectors in our backyard,” said Talos Energy CEO Tim Duncan.
A number of energy companies including Exxon Mobil Corp., Kinder Morgan Inc. and NextDecade Corp. have announced carbon capture projects within the last year after facing pressure from investors and governments to fight climate change. Valero Energy Corp. and BlackRock Inc. along with Navigator Energy Services LLC are even developing an industrial scale carbon-capture pipeline system, another signal of the shift to capitalize on the transition to low-carbon energy.
Talos, which produced more than 71,000 barrels of oil equivalent per day from its offshore wells last year, will serve as the operating partner, while Storegga will provide carbon storage expertise. The two companies have pledged to split costs 50/50 for their initial projects, which will each come with their own operating agreements, financing structures and the ability to add partners.
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