[16th November,] London: Storegga, the independent UK company pioneering carbon reduction and removal for a net zero world, is pleased to announce that, alongside its exclusive Joint Venture (“JV”) Partner Talos Energy Inc. (“Talos”), it has signed a Letter of Intent with Freeport LNG Development, L.P. (“Freeport LNG”) to develop a carbon capture and sequestration (“CCS”) project. The Freeport LNG CCS project (“FLNG CCS”), immediately adjacent to Freeport LNG’s natural gas pre-treatment facilities located near Freeport, on the Gulf Coast, approximately 60 miles southwest of Houston, Texas.
The JV combines Storegga’s leading end-to-end CCS project experience and Talos’s offshore operational and sub-surface expertise. Under the terms of the JV agreement with Talos, as individual CCS projects are matured in the future, each will be ring-fenced with separate operating agreements, financing structures and the possibility of additional working interest partners. Under the JV framework, Talos will be the project manager and operator partner of the project.
The FLNG CCS project will utilise a Freeport LNG-owned geological sequestration site located less than half a mile from point of capture with up to a 30-year injection term and will permanently sequester CO2. The FLNG CCS project benefits from a dedicated source of CO2 and a secured injection site in close physical proximity and, therefore, has limited commercial barriers and a rapid execution timeline assuming efficient regulatory approval processes. Additionally, the site is located within 25 miles of up to an additional 15 million metric tonnes per annum (“MTPA”) of incremental CO2 emissions from major industrial sources, which offers the potential for expansion in the future. The FLNG CCS project is still subject to execution of definitive agreements.
As one of the first liquified natural gas (“LNG”) exporters in the United States, Freeport LNG operates one of the largest LNG liquefaction and export facilities in the world, representing one of the largest single natural gas demand points in the state of Texas. Freeport LNG is in the process of adding a fourth train to the facility that will expand their gas liquefaction capacity to over 20 MTPA.
Talos has been chosen as the project manager and operator of the FLNG CCS project due to its expertise with conventional oil and gas geology, engineering and project delivery. The Company is leveraging this expertise to rapidly become a leader in Gulf Coast CCS opportunities. Storegga is bringing its expertise in carbon management chains: specifically developing CCS storage projects and of enabling linked clusters of industrial CO2 sources.
Storegga Chief Executive Officer Nick Cooper commented: “Storegga and Talos have built a strong partnership that leverages the expertise of each company for the rapid, cost-effective delivery of CCS clusters in the US Gulf Coast region. We are delighted to join Talos and Freeport LNG in the Freeport CCS project. Freeport CCS has the potential to be storing CO2 by late 2024 and to scale up materially thereafter. We expect that this will be the first of several such projects from the Talos-Storegga partnership to serve Gulf Coast industrial CO2 sources and to contribute meaningfully towards net zero in the United States.”
Talos President and Chief Executive Officer Timothy S. Duncan commented: "We are excited to announce this project with Freeport LNG, a global LNG leader. The entrepreneurial collaboration of our teams allowed for the development of a unique, stand-alone carbon sequestration solution, which provides proof of concept to our broader CCS portfolio and is complementary to our larger hub-based project in Jefferson County. It also illustrates the creative solutions that Talos and Storegga can offer to potential CCS project partners. We look forward to advancing this project with Freeport LNG and hope to successfully reach first injection within approximately three years, which would make this the very first active carbon sequestration project on the Gulf Coast.”
“Freeport LNG is pleased to collaborate with Talos, a leading independent energy producer, and Storegga on this important project”, said Michael Smith, Founder, Chairman and CEO of Freeport LNG. “As the only all-electric drive facility of its kind in the U.S., our liquefaction facility produces 90 percent less emissions than other gas turbine-driven facilities. Embarking on carbon capture and sequestration will only further reduce the carbon intensity of our facilities. We look forward to our work with Talos on this innovative CCS project.”
For further information please contact:
Camarco (PR and Media)
Monique Perks, Tom Huddart, Billy Clegg, Emily Hall
020 3757 4983
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Notes to Editors:
Storegga is an independent, UK-based carbon management business at the forefront of the global Net Zero strategy. Storegga champions and delivers carbon capture and storage (“CCS”), hydrogen, and other subsurface renewable projects to accelerate carbon emission reductions and removals.
Storegga is the lead developer of the UK’s Acorn Carbon Capture and Storage (“CCS”) and Hydrogen project, providing essential infrastructure to help the UK meet its net zero targets.
The Acorn Project will provide critical backbone infrastructure for the Scottish Cluster. The Scottish Cluster unites communities, industries and businesses to deliver CCS, hydrogen and other low carbon technologies, supporting Scotland, the UK and Europe to meet net zero goals.
Storegga has partnered with leading engineering and technology groups at the forefront of their fields to accelerate infrastructure development. The Company has partnered with Carbon Engineering to develop Direct Air Capture (“DAC”) in the UK.
For more information on the Acorn CCS and Hydrogen Project, please visit: About Acorn – Acorn CCS - https://theacornproject.uk/about/
ABOUT TALOS ENERGY
Talos Energy (NYSE: TALO) is a technically driven independent exploration and production company focused on safely and efficiently maximizing long-term value through its operations, currently in the United States and offshore Mexico, both upstream through oil and gas exploration and production and downstream through the development of future carbon capture and storage opportunities. As one of the Gulf of Mexico’s largest public independent producers, we leverage decades of technical and offshore operational expertise towards the acquisition, exploration and development of assets in key geological trends that are present in many offshore basins around the world. With a focus on environmental stewardship, we are also utilizing our expertise to explore opportunities to reduce industrial emissions through our carbon capture and storage collaborative arrangement along the U.S. Gulf Coast and Gulf of Mexico. For more information, visit www.talosenergy.com.
TALOS ENERGY INVESTOR RELATIONS CONTACT
Sergio Maiworm +1.713.328.3008
ABOUT FREEPORT LNG
Freeport LNG is an LNG export company headquartered in Houston, Texas. The company’s three train, 15 MTPA liquefaction facility is the seventh largest in the world and second largest in the U.S. Freeport LNG’s liquefaction facility is the largest all-electric drive motor plant of its kind in the world, making it the most environmentally sustainable site of its kind. The facility’s electric drive motors reduce carbon emissions by over 90% relative to gas turbine-driven liquefaction facilities. Freeport plans to expand by adding a fourth liquefaction train, which has received all regulatory approvals for construction. Freeport was formed in 2002 to develop, own and operate an LNG terminal on Quintana Island, near Freeport, Texas. The terminal started LNG import operations in June 2008 and began LNG export operations in 2019. Further information can be found on Freeport’s website at www.freeportlng.com.
FREEPORT LNG MEDIA CONTACT
Heather Browne +1.713.980.2888