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Per the MoU, OnStream CO2 will build, operate, and own carbon-capture equipment near the Commonwealth LNG site in Cameron, LA.
Commonwealth LNG has signed a memorandum of understanding (MoU) with OnStream CO2—a joint venture between Carbonvert and Castex Carbon Solutions—for the installation and operation of a carbon capture and storage (CCS) solution at Commonwealth’s 9.3 MTPA LNG facility in Cameron, LA.
"We are pleased to work with Commonwealth LNG to achieve the shared vision of safely, permanently and economically reducing CO2 emissions,” said Aaron Killian, EVP and CFO, Castex. “OnStream's tailored CO2 capture, transportation, and storage solution will allow Commonwealth LNG to achieve key environmental initiatives while focusing on its core LNG business."
According to the MoU, OnStream CO2 will design, construct, own, and operate CO2 capture equipment in the vicinity of the Commonwealth LNG facility. Captured CO2 will be permanently sequestered at the Cameron Parish CO2 Hub. Commonwealth LNG has dedicated CO2 emitted from its LNG facility for a 20-year term.
OnStream CO2 recently announced the signing of an operating agreement with the State of Louisiana to develop a 24,000-acre plot offshore from Cameron Parish, where captured CO2 will be permanently stored in a hub with a capacity of more than 250 million metric tons. Castex is responsible for the operation of the Cameron Parish CO2 Hub.
"Adding carbon capture technology complements our comprehensive goal of achieving best-in-class environmental standards through measures that also include a focus on responsibly sourced gas and the installation of the highest efficiency gas turbines," said Paul Varello, Founder and Executive Chairman, Commonwealth LNG.
Commonwealth LNG expects a final investment decision (FID) on the LNG project in the first half of 2024, with first cargo shipments planned for 2027. The construction schedule will be accelerated as Commonwealth uses a modular approach with major component fabrication occurring offsite.
"Commonwealth's commitment to our storage site is a great first step and instills confidence in the Lake Charles industrial corridor to launch CO2 capture initiatives and enhance resilience amidst carbon-related global trade requirements and customers' increasing demand for low-carbon products," said Alex Tiller, Founder and CEO, Carbonvert.