U.S. oil major Chevron, through its Chevron New Energies division, and midstream player Enterprise Products Partners will study and evaluate opportunities for carbon dioxide capture, utilisation, and storage (CCUS) from their respective business operations in the U.S. Midcontinent and Gulf Coast.
Chevron announced the signing of a framework agreement with a subsidiary of Enterprise on Monday 13 September 2021.
The creation of Chevron’s New Energies division as well as its president was announced in late July 2021. The division’s initial focus includes commercialization opportunities in hydrogen, carbon capture, and offsets and support of ongoing growth in biofuels.
Following the framework between Chevron and Enterprise, the companies expect the initial phase of the study, in which they will evaluate specific business opportunities, to last about six months.
“This joint effort has the potential to advance our ongoing work to grow our lower carbon businesses with commercial-scale using the industry expertise both companies bring to the project”, said Jeff Gustavson , president of Chevron New Energies.
“International climate change scientists working with the United Nations have identified carbon capture as a critical technology needed to help the global energy system transition to a lower carbon future”.
The two companies have previously worked together and believe they bring complementary capabilities to successfully pursue CCUS. As explained by Chevron, projects resulting from the evaluation would seek to combine Enterprise’s midstream pipeline and storage network with Chevron’s sub-surface expertise to create opportunities to capture, aggregate, transport and sequester carbon dioxide in support of the evolving energy landscape.
“The joint study with Chevron is part of our growing focus on developing and utilising new technologies and leveraging our transportation and storage network in order to better manage our own carbon footprint and provide customers with new midstream services to support a lower carbon economy”, said A.J. “Jim” Teague , co-chief executive officer of Enterprise’s general partner.
“Our success in upgrading and repurposing existing assets will be important to the success of any initiative we move forward with”.
It is worth reminding that Chevron set its new goals for reducing carbon emissions back in March 2021. The company expects to invest about $3 billion in the coming years to further its energy transition efforts.