NorthAmOil: Freeport LNG announces CCS plan amid news of stake sale

Freeport LNG Development announced this week that it had executed a letter of intent (LoI) with Talos Energy to jointly develop a carbon capture and storage (CCS) facility to serve the Freeport liquefaction terminal on the Texas Gulf Coast. The announcement about the FLNG CCS project came a day after Global Infrastructure Partners (GIP) said that it was selling its 25.7% stake in Freeport to Japan’s JERA for $2.5bn.
The Japanese firm is the world’s largest buyer of LNG and already owns a 25% interest in Train 1 at Freeport. It said in a statement that the acquisition would expand its involvement in Freeport to cover all three trains at the plant. JERA added that it would work with the consortium that operates Freeport to advance new LNG schemes, including a potential fourth train at the terminal.
The transaction comes as buyers in Europe and Asia compete to secure new LNG volumes amid a supply crunch that threatens to worsen if temperatures this winter are colder than normal.
The FLNG CCS project would use a nearby Freeport-owned geological sequestration site with up to a 30-year injection term to permanently sequester carbon dioxide (CO2) from the liquefaction project. The scheme is subject to the finalisation of definitive agreements, but if it proceeds as planned, the companies anticipate first CO2 injection occurring by the end of 2024.
Talos will be the project manager and operator and will be joined by its partner, Storegga Geotechnologies.