Commonwealth LNG announced it has entered into a Memorandum of Understanding (MOU) with OnStream CO2 LLC, a joint venture between Carbonvert Inc. and Castex Carbon Solutions, LLC, for a carbon capture and storage solution at Commonwealth's 9.3 million tonnes per annum LNG facility under development in Cameron, Louisiana, south of Lake Charles.
Under the agreement, OnStream CO2 will design, construct, own, and operate carbon dioxide (CO2) capture equipment near the Commonwealth LNG site. The captured CO2 will be permanently sequestered at the Cameron Parish CO2 Hub. Commonwealth will dedicate CO2 emitted from the LNG facility for a 20-year term.
The Carbonvert-Castex joint venture recently announced an operating agreement with the State of Louisiana to develop a 24,000-acre tract of land offshore Cameron Parish, where it will permanently store CO2 in a hub with capacity for more than 250 million metric tons.
Commonwealth LNG Founder and Executive Chairman Paul Varello said, "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."
Carbonvert Founder and CEO Alex Tiller said, "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."
Castex will serve as the operator for the Cameron Parish CO2 Hub. Castex EVP and CFO Aaron Killian said, "We are pleased to work with Commonwealth LNG to achieve the shared vision of safely, permanently and economically reducing CO2 emissions. 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."
Commonwealth LNG anticipates a final investment decision on its LNG project in the first half of 2024, with first cargo deliveries expected in 2027. Commonwealth will be able to achieve an accelerated construction schedule by using a modular approach with major components being fabricated offsite. Final terms of the carbon capture arrangement remain subject to negotiation of a definitive agreement between the parties.
