BKV CORPORATION AND ENLINK MIDSTREAM PARTNER ON CARBON SEQUESTRATION PROJECT IN THE BARNETT SHALE

Rhea-AI Summary

BKV and EnLink Midstream have announced a partnership to develop a carbon capture and sequestration (CCS) project in the Barnett Shale region of North Texas. The project aims to begin operations by the end of 2023, with plans to become one of the first permanent commercial sequestration projects in the U.S. BKV's CEO stated that this initiative will help achieve net-zero green natural gas production. EnLink's chairman emphasized the project's goal of significantly reducing carbon emissions, aligning with their 2030 emissions intensity reduction target.

Positive

• BKV and EnLink have reached a Final Investment Decision for a CCS project.
• The project is expected to commence by the end of 2023.
• It aims to capture a significant amount of CO2 emissions annually, supporting EnLink's 2030 reduction goals.
• BKV's initiative is projected to offset current emissions by approximately 10%, moving towards net-zero by 2025.

Negative

• None.

-BKV and EnLink to develop carbon sequestration project in the Barnett

-Sequestration planned to begin in 2023; expected to be one of the first permanent commercial sequestration projects to come online in the United States

DENVER, June 9, 2022 /PRNewswire/ -- BKV Corporation ("BKV" or "the Company") and EnLink Midstream, LLC (NYSE: ENLC) (EnLink) today announced that they have reached a Phase I Final Investment Decision (FID) and entered into a definitive agreement to develop a carbon capture and sequestration (CCS) project in the Barnett Shale region of North Texas.

BKV and EnLink to develop carbon capture and sequestration project in the Barnett Shale region of North Texas

"It is critical that companies in the industry work together to bring actionable change and move large-scale carbon reduction projects forward," said BKV Chief Executive Officer Chris Kalnin. "This partnership brings us one step closer to the safe and profitable production of net-zero green natural gas." 

Carbon sequestration is the process of capturing and permanently storing carbon dioxide, which reduces the amount of pollutive carbon dioxide in the atmosphere. Under their agreement, BKV will continue to produce natural gas containing carbon dioxide from its Barnett Shale area operations, and EnLink will transport this natural gas via its modified pipeline and facility infrastructure to the EnLink natural gas processing plant in Bridgeport, Texas. At the Bridgeport plant, the carbon dioxide waste stream will be captured, compressed, and then disposed of through permanent sequestration via BKV's nearby injection well.

"EnLink values our partnership with BKV, and we are eager to build upon it through this sustainable CCS project," EnLink Chairman and CEO Barry E. Davis said. "The project will capture and store a significant amount of carbon dioxide emissions per year, which moves EnLink a step closer to achieving our goal of a 30 percent reduction in CO₂-equivalent emissions intensity by 2030 over EnLink's 2020 scope 1 emissions intensity."

As part of its sustainability efforts, BKV recently formed dCarbon Ventures, a dedicated business unit focused on driving CCS innovations and project development. Vice President of dCarbon Ventures, Lauren Read, said, "CCS is such an important component of driving climate solutions, and I'm really excited to have a project at the Phase I FID point. We plan to be injecting carbon dioxide by the end of 2023, at which point it is expected to be one of the first permanent commercial sequestration projects to come online in the United States." Read said that this initiative is anticipated to offset BKV's current emissions by approximately 10 percent, bringing the company even closer to its goal of reaching net-zero by 2025.

Read continued, "We are doing this the BKV way—which means taking action to address our own emissions rather than achieving our goal through the purchase of offsets alone. Carbon sequestration is a fundamental element in our sustainability plans, and we expect dCarbon Ventures to be an area of significant growth for BKV."

"This investment reinforces our commitment to leading the way in the production of net-zero green natural gas," Kalnin said. "We look forward to being a pioneer in CCS and working with EnLink, and other like-minded companies, who are ready to address climate change head-on."

About BKV Corporation
Headquartered in Denver, Colorado, BKV Corporation (BKV) is a privately held natural gas exploration and production company that seeks to deliver reliable, sustainable energy to the community. Founded in 2015, BKV has over 200 employees across the U.S. that are committed to building a different kind of energy company. BKV is one of the top 20 natural gas producers in the United States and the largest natural gas producer in the Barnett Shale. BKV Corporation is the parent company for the BKV family of companies. For more information, visit www.bkvcorp.com.

About EnLink Midstream
EnLink Midstream reliably operates a differentiated midstream platform that is built for long-term, sustainable value creation. EnLink's best-in-class services span the midstream value chain, providing natural gas, crude oil, condensate, and NGL capabilities, and carbon capture, transportation, and sequestration services. Our purposely built, integrated asset platforms are in premier production basins and core demand centers, including the Permian Basin, Oklahoma, North Texas, and the Gulf Coast. EnLink's strong financial foundation and commitment to execution excellence drive competitive returns and value for our employees, customers, and investors. Headquartered in Dallas, EnLink is publicly traded through EnLink Midstream, LLC (NYSE: ENLC). Visit www.EnLink.com to learn how EnLink connects energy to life.

Forward-Looking Statements

This communication includes forward-looking statements. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws. Any statements herein regarding future events, such as carbon emission reduction goals, new business opportunities, growth objectives and any other statements that are not historical facts, are forward-looking statements.  These forward-looking statements involve certain risks and uncertainties, many of which are beyond the parties' control, that could cause actual results to differ materially from those indicated in such forward-looking statements, including, but not limited to risks relating to climate change, regulatory restrictions and other risks relating to the parties operations. These forward-looking statements speak only as of the date of this communication, and each of BKV and EnLink expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein.

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SOURCE BKV Corporation

FAQ

What is the carbon sequestration project announced by ENLC?

BKV and EnLink Midstream are developing a carbon capture and sequestration project in North Texas, set to begin operations by the end of 2023.

How does the ENLC project impact CO2 emissions?

The project aims to capture a significant amount of CO2 emissions annually, supporting EnLink's target of a 30% reduction in emissions intensity by 2030.

When will the ENLC carbon sequestration project commence?

The carbon sequestration project is expected to start injecting carbon dioxide by the end of 2023.

What is the goal of BKV's carbon sequestration project?

The goal is to achieve net-zero green natural gas production and to offset BKV's current emissions by approximately 10%.