HOUSTON – Talos Energy Inc. and partner Carbonvert Inc. have submitted the winning bid for the Texas General Land Office’s (GLO) Jefferson County, Texas, carbon storage site near Beaumont and Port Arthur.
While there were 12 submissions, the Texas School Land Board unanimously approved awarding the lease to Talos and Carbonvert, subject to finalization of lease terms.
The project site encompasses a total land area of more than 40,000 gross acres and is located offshore in Texas state waters in the Gulf of Mexico. According to Talos, the site is 100% covered by the company’s existing seismic database and is near a large concentration of industrial emitters along the Texas and Louisiana Gulf Coast.
Based on Talos’s preliminary understanding of the rock and fluid properties of the saline reservoirs of the site, the company expects it can ultimately sequester about 225 to 275 million metric tons of carbon dioxide from industrial sources in the area. Talos will operate the project.
The process will now enter into an exclusive phase where the companies will negotiate a lease agreement with the GLO staff based on the terms of the Talos bid and the terms included in the original request for proposal from the GLO. Final terms are subject to the approval of the Texas School Land Board.
Talos President and CEO Timothy S. Duncan said: “With this award, we are positioned to become among the first independent US energy companies with an identified site dedicated to carbon sequestration, further advancing our leadership among peers in this rapidly-developing space. The project site possesses favorable geological characteristics and close commercial proximity to support an attractive project in the future.
“This is the first of several steps in our strategy to build multiple carbon capture and storage sites along the United States Gulf Coast where we can use Talos’s core competencies to operate these important projects.”
Duncan continued: “We want to redefine the role of traditional oil and gas companies, as we recognize the need to responsibly develop and produce hydrocarbons as well as lowering overall emissions in the communities where we work and live.”
The company said this bid submission pre-dates its exclusive joint venture with Storegga Geotechnologies Ltd. to pursue carbon capture and sequestration throughout the US Gulf Coast.