EnLink Midstream and Oxy Low Carbon Ventures Sign Letter of Intent for Mississippi River CO2 Transportation Services Agreement

Rhea-AI Summary

EnLink Midstream and Oxy Low Carbon Ventures have signed a letter of intent for a Transportation Services Agreement to transport CO₂ along the Mississippi River in Louisiana. EnLink will leverage existing and new pipeline infrastructure to facilitate this service, linking industrial emitters to OLCV's sequestration facility in Livingston Parish. The corridor is noted for its high industrial CO₂ emissions. This collaboration aims to advance carbon management solutions and align with net-zero goals.

Positive

• Execution of a Transportation Services Agreement for CO₂ transport with Oxy Low Carbon Ventures.
• Utilization of existing infrastructure reduces capital expenditure and hastens project implementation.
• Strategically targets a high-emission area to enhance carbon management offerings.

Negative

• None.

DALLAS, May 3, 2022 /PRNewswire/ -- EnLink Midstream Operating, LP (EnLink), a subsidiary of EnLink Midstream, LLC (NYSE: ENLC), and Oxy Low Carbon Ventures, LLC (OLCV), a subsidiary of Occidental (NYSE: OXY), today announced they have executed a letter of intent for a Transportation Services Agreement (TSA). Under the terms, EnLink would provide CO₂ transportation services for OLCV along the Mississippi River corridor from Waggaman to Baton Rouge in Louisiana.

EnLink would utilize existing and new build pipelines and related infrastructure to transport CO₂ from industrial emitters to OLCV's planned sequestration facility in Livingston Parish, Louisiana, where OLCV has secured a pore space lease of over 30,000 acres.

"We are pleased to be working with OLCV as we further EnLink's goal to build and operate a CO₂ network connecting emitting facilities and sequestration sites across southern Louisiana," said Barry E. Davis, EnLink Chairman and Chief Executive Officer. "The Mississippi River corridor has one of the highest concentrations of industrial CO₂ emissions in the U.S. and EnLink is uniquely positioned to serve customers in the region given our extensive pipeline infrastructure already in the ground."

OLCV, through its 1PointFive business unit, is developing sequestration hubs on the Gulf Coast and across the U.S., some of which are expected to be anchored by direct air capture (DAC) facilities. The hubs will provide access to high quality pore space and efficient transportation infrastructure, providing new carbon management solutions.

"We look forward to working with EnLink as we advance development of our sequestration hubs to provide industrial emitters with end-to-end solutions to capture, transport and permanently store CO₂," said Richard Jackson, President, U.S. Onshore Resources and Carbon Management, Operations, Oxy. "This collaboration aligns with our strategy to accelerate the path to net zero not only for ourselves but for other organizations along the Mississippi River corridor looking to do the same."

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, NGL capabilities, and carbon capture, transportation, and sequestration. 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.

About Oxy Low Carbon Ventures
Oxy Low Carbon Ventures, LLC (OLCV) is a subsidiary of Occidental (Oxy), an international energy company with assets primarily in the United States, the Middle East and North Africa. OLCV is focused on advancing cutting-edge, low-carbon technologies and business solutions that enhance Oxy's business while reducing emissions. OLCV also invests in the development of low-carbon fuels and products, as well as sequestration services to support carbon capture projects globally. Visit Carbon Innovation on oxy.com for more information.

Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein that address activities, events, developments or transactions that EnLink Midstream and Oxy expect, believe or anticipate will or may occur in the future are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from expectations, including required approvals by regulatory agencies, the possibility that the anticipated benefits from such activities, events, developments or transactions cannot be fully realized, the possibility that costs or difficulties related thereto will be greater than expected, the impact of competition, and other risk factors included in EnLink Midstream's and Oxy's respective reports filed with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by law, EnLink Midstream and Oxy do not intend to update or revise their respective forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations: Brian Brungardt, Director of Investor Relations, 214-721-9353, brian.brungardt@enlink.com
Media Relations: Jill McMillan, Vice President of Strategic Relations & Public Affairs, 214-721-9271, jill.mcmillan@enlink.com

Investor Relations: Jeff Alvarez, Vice President, Investor Relations, 713-215-7864, jeff_alvarez@oxy.com
Media Relations: Eric Moses, Vice President, Corporate Affairs, 713-497-2017, eric_moses@oxy.com

 

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SOURCE EnLink Midstream Operating, LP

FAQ

What is the agreement between EnLink and Oxy Low Carbon Ventures?

EnLink and Oxy Low Carbon Ventures signed a letter of intent for a Transportation Services Agreement to provide CO₂ transportation services.

Where will the CO₂ transportation services take place?

The services will take place along the Mississippi River corridor from Waggaman to Baton Rouge in Louisiana.

What is the significance of the Mississippi River corridor in this agreement?

The corridor has one of the highest concentrations of industrial CO₂ emissions in the U.S., making it a strategic location for carbon management.

What is the purpose of the planned sequestration facility in Livingston Parish?

The facility will be used for the permanent storage of CO₂ transported from industrial emitters.

What is EnLink's approach to carbon management?

EnLink aims to build and operate a CO₂ network that connects emitting facilities to sequestration sites across southern Louisiana.