Natural gas and pipeline giant Energy Transfer has signed a letter of intent to sell carbon dioxide captured from five of its Haynesville Basin gas facilities to a carbon management company.
The agreement could help CapturePoint speed up the development of a 150-mile carbon dioxide pipeline in Louisiana and a major sequestration site it owns near the Louisiana-Texas border.
The agreement would have CapturePoint buy about 1.5 million tons of Energy Transfer’s carbon dioxide per year, sequestering it in western Louisiana. CapturePoint CEO Tracy Evans said the letter of intent is crucial to bringing the project to fruition.
“The Energy Transfer volumes were key to underwriting and making the project a reality,” Evans said in an interview. “With 150 miles of pipe, we’ll need quite a bit of volume to make that work.”
