EnLink Midstream Signs Transportation Service Agreement with ExxonMobil
DALLAS, Oct. 12, 2022 /PRNewswire/ -- EnLink Midstream, LLC (NYSE: ENLC) (EnLink) announced today that it has entered into a transportation service agreement (TSA) with a subsidiary of ExxonMobil Corporation (NYSE: XOM) (ExxonMobil). Under the terms of the TSA, EnLink will utilize portions of its existing pipeline network, as well as new facilities, to deliver carbon dioxide (CO2) from the Mississippi River corridor in southeastern Louisiana to ExxonMobil's 125,000-acre CO2 storage location under development in Vermilion Parish.
The TSA includes industry-standard terms and conditions for the provision of transportation services. Ultimate available reserved capacity under the agreement is up to 10 million metric tonnes per year, with initial reserved capacity of 3.2 million metric tonnes per year, beginning early 2025.
"EnLink is executing on our first-mover advantage to become the CO2 transportation provider of choice in Louisiana," EnLink Chief Executive Officer Jesse Arenivas said. "Utilizing our extensive network enables us to provide the most timely and cost-effective solution to CO2 transportation, with a significantly lower environmental impact.
"EnLink is uniquely positioned to serve customers in the region given our extensive pipeline infrastructure already in the ground. The Mississippi River corridor emits approximately 80 million metric tonnes of CO2 per year and has one of the highest concentrations of industrial CO2 emissions in the United States. Carbon capture projects like this will help EnLink's customers and the State of Louisiana reach their decarbonization goals, and we're excited to be a part of this unique project."
"This landmark project represents large scale, real world progress on the journey to decarbonize the global economy," said Dan Ammann, president of ExxonMobil Low Carbon Solutions. "ExxonMobil is providing a critical and scalable solution to reduce CO2 emissions, and we're ready to offer the same service to other large industrial customers in the state of Louisiana and around the world."
About EnLink Midstream
EnLink Midstream reliably operates a differentiated midstream platform that is built for long-term, sustainable value creation. EnLink's best-in-class services span the midstream value chain, providing natural gas, crude oil, condensate, NGL capabilities, and carbon capture, transportation and sequestration. Our purposely built, integrated asset platforms are in premier production basins and core demand centers, including the Permian Basin, Oklahoma, North Texas, and the Gulf Coast. EnLink's strong financial foundation and commitment to execution excellence drive competitive returns and value for our employees, customers, and investors. Headquartered in Dallas, EnLink is publicly traded through EnLink Midstream, LLC (NYSE: ENLC). Visit www.EnLink.com to learn how EnLink connects energy to life.
ExxonMobil, one of the largest publicly traded international energy and petrochemical companies, creates solutions that improve quality of life and meet society's evolving needs.
The corporation's primary businesses - Upstream, Product Solutions and Low Carbon Solutions - provide products that enable modern life, including energy, chemicals, lubricants, and lower-emissions technologies. ExxonMobil holds an industry-leading portfolio of resources, and is one of the largest integrated fuels, lubricants and chemical companies in the world. To learn more, visit exxonmobil.com and the Energy Factor.
This press release includes forward-looking statements within the meaning of the federal securities laws. All statements, other than statements of historical fact, included in this press release constitute "forward-looking statements". Although these statements reflect the current views, assumptions, and expectations of EnLink's management, the matters addressed herein involve certain assumptions, risks, and uncertainties that could cause actual activities, performance, outcomes, and results to differ materially from those indicated. Such risks and uncertainties include, but are not limited to, risks and uncertainties related to EnLink's operations, the construction and operation of new facilities, and compliance with regulatory and permitting requirements. An extensive list of factors that can affect EnLink's business and operations are discussed in EnLink's filings with the Securities and Exchange Commission, including EnLink's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. EnLink does not assume any obligation to update any forward-looking statements.
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SOURCE EnLink Midstream, LLC
Released October 12, 2022