Chevron and Enterprise to explore CCUS business opportunities
Through its Chevron New Energies division Chevron U.S.A. Inc., a subsidiary of Chevron Corporation one of the world’s largest integrated energy companies, and a subsidiary of Enterprise Products Partners L.P. have announced a framework to study and evaluate opportunities for carbon dioxide (CO2) capture, utilization, and storage (CCUS) from their respective business operations in the US Midcontinent and Gulf Coast.
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, natural gas liquids (NGLs), crude oil, refined products, and petrochemicals.
According to a statement, the companies expect the initial phase of the study in which they will evaluate specific business opportunities to last about six months.
The joint study with Chevron is part of our growing focus on developing and utilizing 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. Our success in upgrading and repurposing existing assets will be important to the success of any initiative we move forward with, said A.J. “Jim” Teague, co-CEO of Enterprise’s general partner.
The companies have successfully worked together on prior business opportunities and believe they bring complementary capabilities to successfully pursue CCUS. Projects resulting from the evaluation would seek to combine Enterprise’s extensive 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.
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. 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, said Jeff Gustavson, President of Chevron New Energies.