Talos Energy Inc. ( TALO Quick Quote TALO - Free Report) signed a letter of intent with Freeport LNG Development LP to develop a carbon capture and sequestration ("CCS") project on the Gulf Coast.
Known as the Freeport LNG CCS project ("FLNG CCS"), the facility will be developed beside Freeport LNG's natural gas pre-treatment facilities along the Gulf Coast. The proposed facility would capture and store carbon emissions from Freeport LNG's liquefaction and export facility near Freeport, Texas.
Beside this, the project site is situated near major industrial facilities, which can provide up to an additional 15 million metric tons per annum (mpta) of carbon dioxide (CO
2) emissions. This offers further scope for development.
Freeport LNG's liquefaction facility produces 90% less emissions as it uses electric motors instead of gas turbines to drive the liquefaction compressors on its trains. The development of the CCS project will reduce the amount of carbon emissions produced from the facility.
Talos Energy will serve as the manager and operator of the project for 30 years along with partner Storegga. Storegga and Talos Energy formed a partnership that leverages their expertise for the rapid and profitable delivery of CCS clusters in the Gulf Coast region.
The FLNG CCS project, which is expected to start up by 2024 end, follows several major developments in the companies' CCS portfolio. It is expected to be the first of such projects from the Talos Energy-Storegga partnership to serve Gulf Coast industrial facilities and significantly contribute to a carbon-neutral future in the United States.
Oil and gas companies are getting actively involved in CCS-related projects as the same offers a transition pathway for the rapid and effective reduction of CO
2 emissions beyond what can be achieved by alternative methods like electrification and renewable fuels. Talos Energy aims to become a leader in Gulf Coast CCS opportunities by leveraging its expertise in offshore drilling and production to its carbon management goals. Company Profile & Price Performance
Headquartered in Houston, TX, Talos Energy is a leading upstream company that engages in the exploration, development, and production of oil and gas properties.
Shares of the company have underperformed the
industry in the past three months. The stock has gained 17.4% compared with the industry's 40.9% growth.
Image Source: Zacks Investment Research Zacks Rank & Stocks to Consider
The company currently has a Zack Rank #3 (Hold).
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