1PointFive and Enterprise Agreement Supports Development of Carbon Dioxide Transportation Network for Southeast Texas Sequestration Hub
1PointFive and Enterprise Products Partners (NYSE: EPD) have announced an agreement to develop a carbon dioxide transportation network supporting the Bluebonnet Sequestration Hub in southeast Texas. Under the Transportation Services Agreement, Enterprise will develop a new pipeline network co-located with existing infrastructure to transport CO2 emissions from facilities near the Houston Ship Channel to the sequestration hub. The project recently received funding from the U.S. Department of Energy. The partnership combines 1PointFive's CO2 management expertise with Enterprise's midstream experience to provide decarbonization solutions for industrial customers.
1PointFive e Enterprise Products Partners (NYSE: EPD) hanno annunciato un accordo per sviluppare una rete di trasporto di anidride carbonica a supporto del Bluebonnet Sequestration Hub nel sud-est del Texas. In base all'Accordo di Servizi di Trasporto, Enterprise svilupperà una nuova rete di pipeline co-locata con le infrastrutture esistenti per trasportare le emissioni di CO2 da impianti situati vicino al Houston Ship Channel fino al centro di sequestrazione. Il progetto ha recentemente ricevuto finanziamenti dal Dipartimento dell'Energia degli Stati Uniti. La partnership combina l'esperienza nella gestione della CO2 di 1PointFive con la competenza nel settore midstream di Enterprise per fornire soluzioni di decarbonizzazione ai clienti industriali.
1PointFive y Enterprise Products Partners (NYSE: EPD) han anunciado un acuerdo para desarrollar una red de transporte de dióxido de carbono que apoye el Bluebonnet Sequestration Hub en el sureste de Texas. Bajo el Acuerdo de Servicios de Transporte, Enterprise desarrollará una nueva red de tuberías ubicada junto a la infraestructura existente para transportar las emisiones de CO2 desde las instalaciones cercanas al Houston Ship Channel hasta el centro de sequestración. El proyecto recibió recientemente financiamiento del Departamento de Energía de los EE. UU. La asociación combina la experiencia en gestión de CO2 de 1PointFive con la experiencia en el sector midstream de Enterprise para ofrecer soluciones de descarbonización a clientes industriales.
1PointFive와 Enterprise Products Partners (NYSE: EPD)는 텍사스 남동부에 있는 Bluebonnet Sequestration Hub를 지원하는 이산화탄소 운송 네트워크 개발을 위한 협약을 발표했습니다. 운송 서비스 계약에 따라, Enterprise는 휴스턴 항구 근처의 시설에서 이산화탄소 배출을 집적 처리 허브로 운송하기 위해 기존 인프라와 함께 설치될 새로운 파이프라인 네트워크를 개발할 것입니다. 이 프로젝트는 최근 미국 에너지부로부터 자금을 지원받았습니다. 이 파트너십은 1PointFive의 CO2 관리 전문성과 Enterprise의 중간 파이프라인 분야 경험을 결합하여 산업 고객을 위한 탈탄소화 솔루션을 제공하는 데 중점을 두고 있습니다.
1PointFive et Enterprise Products Partners (NYSE: EPD) ont annoncé un accord pour développer un réseau de transport de dioxyde de carbone soutenant le Bluebonnet Sequestration Hub dans le sud-est du Texas. Dans le cadre de l'Accord de Services de Transport, Enterprise développera un nouveau réseau de pipelines co-localisé avec les infrastructures existantes pour transporter les émissions de CO2 des installations situées près du Houston Ship Channel jusqu'au hub de séquestration. Le projet a récemment reçu un financement du Département de l'Énergie des États-Unis. Ce partenariat combine l'expertise en gestion de la CO2 de 1PointFive avec l'expérience en midstream d'Enterprise pour fournir des solutions de décarbonisation aux clients industriels.
1PointFive und Enterprise Products Partners (NYSE: EPD) haben eine Vereinbarung angekündigt, um ein Transportnetzwerk für Kohlendioxid zu entwickeln, das das Bluebonnet Sequestration Hub im Südosten von Texas unterstützt. Gemäß der Transportdienstleistungsvereinbarung wird Enterprise ein neues Pipeline-Netzwerk entwickeln, das zusammen mit der bestehenden Infrastruktur eingerichtet wird, um CO2-Emissionen von Anlagen in der Nähe des Houston Ship Channel zum Sequestrationszentrum zu transportieren. Das Projekt erhielt kürzlich eine Finanzierung vom US-Energieministerium. Die Partnerschaft vereint die CO2-Management-Expertise von 1PointFive mit der Midstream-Erfahrung von Enterprise, um Dekarbonisierungslösungen für industrielle Kunden anzubieten.
- Secured DOE funding support for the Bluebonnet Sequestration Hub development
- Strategic partnership leveraging existing pipeline infrastructure to reduce costs
- New fee-based transportation service agreement creating additional revenue stream for Enterprise
- None.
Insights
The partnership between 1PointFive and Enterprise Products Partners marks a significant strategic development in carbon capture infrastructure. The fee-based transportation agreement leverages EPD's extensive midstream expertise and existing pipeline network, creating a new revenue stream with minimal capital risk. This positions EPD well in the growing carbon capture market, particularly given the recent DOE funding support for the Bluebonnet Sequestration Hub.
The deal's structure aligns with EPD's traditional business model of providing fee-based services, which typically generate stable, predictable cash flows. The co-location with existing infrastructure suggests efficient capital deployment and potential operational synergies. For EPD investors, this represents a strategic expansion into the carbon capture transportation sector while maintaining the company's low-risk business approach.
This agreement represents a important step in developing practical carbon capture infrastructure in one of America's largest industrial corridors. The Houston Ship Channel project's viability is enhanced by three key factors: DOE funding support, Occidental's extensive CO2 management experience and Enterprise's established infrastructure network. The partnership creates a blueprint for industrial-scale carbon capture implementation, particularly valuable as companies face increasing pressure to reduce emissions.
The project's focus on hard-to-abate sectors addresses a critical gap in industrial decarbonization efforts. The combination of federal support and private sector expertise significantly improves the project's execution probability and potential economic viability.
Under the Transportation Services Agreement, once 1PointFive provides notice, Enterprise will develop a new pipeline network and provide fee-based transportation services to 1PointFive to transport CO2 emissions captured by third parties at facilities in the vicinity of the Houston Ship Channel to 1PointFive’s Bluebonnet Sequestration Hub. The new pipeline network will be co-located with existing pipeline infrastructure.
“We are excited to reach this milestone and look forward to collaborating with Enterprise to build a CO2 transportation network for our sequestration hub, which is designed to provide a reliable and efficient way for hard-to-abate sectors to address their CO2 emissions,” said Jeff Alvarez, President of 1PointFive Sequestration. “This agreement pairs our expertise managing large volumes of CO2 with Enterprise’s decades of midstream experience to bring confidence to industrial customers seeking a decarbonization solution.”
“This project with 1PointFive builds upon the strong working relationship we have had with Occidental for many years,” said Bob Sanders, Executive Vice President of Asset Optimization for Enterprise’s general partner. “By leveraging our proven midstream expertise and integrated network of assets, we are well positioned to provide a reliable and cost-efficient CO2 transportation solution.”
1PointFive’s Bluebonnet Sequestration Hub was recently awarded funding from the
About 1PointFive
1PointFive is a Carbon Capture, Utilization and Sequestration (CCUS) company that is working to help curb global temperature rise to 1.5°C by 2050 through the deployment of decarbonization solutions, including Carbon Engineering's Direct Air Capture and AIR TO FUELS™ solutions alongside geologic sequestration hubs. Visit 1PointFive.com for more information.
AIR TO FUELS™ is a registered trademark of Carbon Engineering ULC.
About Enterprise Products Partners L.P.
Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. Services include: natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage and marine terminals; crude oil gathering, transportation, storage and marine terminals; petrochemical and refined products production, transportation, storage, and marine terminals and related services; and a marine transportation business that operates on key
Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including those relating to Occidental’s and 1PointFive’s development and deployment of the Bluebonnet Sequestration Hub, the development of the CO2 transportation network for the Hub, and the related impact on carbon emissions, which are based on current expectations, beliefs, plans, estimates, and forecasts. All statements other than statements of historical fact are forward-looking statements for purposes of federal and state securities laws. Words such as “believe,” “will,” “may,” “expect,” “plan,” “potential,” or similar expressions that convey the prospective nature of events or outcomes are generally indicative of forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, Occidental and Enterprise do not undertake any obligation to update, modify, or withdraw any forward-looking statements as a result of new information, future events, or otherwise.
These statements are not guarantees of future performance as they involve assumptions that may prove to be incorrect and risks and uncertainties, including those that are beyond Occidental’s and Enterprise’s control. Factors that may cause actual results to differ materially from forward-looking statements include Occidental’s, 1PointFive’s and/or Enterprise’s ability to develop and employ existing or new technology on a commercial scale, to access capital, to collaborate with third parties and customers, and to receive approvals from regulatory bodies, as well as market conditions, geopolitical events, and scientific developments. Additional factors that may affect Occidental’s and 1PointFive’s ability to develop and deploy the Bluebonnet Sequestration Hub, the development of the CO2 transportation network for the Hub, and the benefits of the agreement between 1PointFive and Enterprise can be found in Occidental’s and Enterprise’s respective filings with the
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1PointFive - Media
Eric Moses
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eric_moses@oxy.com
Enterprise - Media
Rick Rainey
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rrainey@eprod.com
1PointFive - Investors
R. Jordan Tanner
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Enterprise - Investors
Libby Strait
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Source: Enterprise Products Partners L.P.
FAQ
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