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Equinor (EQNR) to Build a Pipeline for Carrying Captured CO2

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Equinor ASA (EQNR - Free Report) has announced that, along with Fluxys, it will be developing a key infrastructure project. The agreement calls for building a pipeline across 620 miles to transport captured carbon dioxide for storage in the Norwegian North Sea.

The carbon dioxide that will be stored in the safe storage site underneath the North Sea will be captured from industrial emitters in Belgium. Equinor said it expects investment decisions for the development, which is still in the feasibility stage, by 2025.

Equinor anticipates that the offshore pipeline will be capable of transporting 20 million to 40 million tonnes of carbon dioxide every year. The project will be of utmost importance since carbon capture, transport and storage (CCS) has become essential in reducing the emission of harmful gases responsible for global warming. Thus, decarbonization on a massive scale will be possible in the North-West European market once the project starts operating, according to Equinor.

EQNR said that for reaching net-zero by 2050 and a successful energy transition, CCS is essential.  

Currently, it carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include Antero Resources (AR - Free Report) , Whiting Petroleum and Matador Resources Company (MTDR - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Resources is a leading upstream energy player with a strong presence in the gas-rich prolific Appalachian Basin in West Virginia and Ohio. In the past 60 days, Antero Resources has witnessed upward earnings estimate revisions for 2022 and 2023.

The substantial exposure to improving commodity price is a huge positive for Antero Resources.

Whiting Petroleum is a leading upstream energy company and the top producer of crude oil in North Dakota. With oil prices improving rapidly, Whiting Petroleum is expected to continue generating handsome cash flows while maintaining a healthy balance sheet.

Headquartered in Denver, CO, Whiting Petroleum has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.

Improving oil prices is a boon for Matador Resources’ upstream operations. This is because MTDR has a strong presence in oil-rich core acres of the Wolfcamp and Bone Spring plays in the Delaware Basin. Favorable oil price is likely to aid Matador Resources in increasing production volumes.

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