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October 26, 2021

Denbury and Mitsui explore low-carbon solutions opportunities

The two firms will seek to develop oil assets that are carbon negative in the US Gulf Coast.

By Archana Rani

Denbury Onshore, a subsidiary of energy firm Denbury, and Mitsui unit Mitsui E&P USA have started an assessment of low-carbon solutions opportunities in the US Gulf Coast.

The firms are jointly evaluating possible opportunities to develop oil assets that are carbon-negative and use anthropogenic CO₂ via carbon capture, utilisation, and storage (CCUS).

As part of this effort, the two firms will jointly explore opportunities for CO₂ offtake from projects operated by Mitsui, in the US Gulf Coast.

Furthermore, MEPUSA will identify opportunities in the CCUS sphere internationally that allow for further collaboration with Denbury.

Mitsui energy business unit chief operating officer Toru Matsui said: “We are pleased to begin this exciting and impactful partnership with Denbury.

“Through this joint evaluation, we hope to deepen our relationship with Denbury to further develop our CCUS value chain in the US.

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“Through our involvement in developing CCUS projects globally, Mitsui aims to achieve net-zero carbon emissions and create a sustainable and eco-friendly society.”

In a separate announcement, Cheniere Energy subsidiary Cheniere Marketing agreed to supply LNG to commodity firm Glencore.

Under the approximately 13-year binding sale and purchase agreement (SPA), Glencore will receive approximately 0.8 million tonnes per annum (Mtpa) of LNG from Cheniere Marketing, on a free-on-board basis, from April 2023.

Cheniere president and CEO Jack Fusco said: “This SPA further builds upon Cheniere’s commercial momentum, marking another important milestone in contracting our LNG capacity ahead of an FID of Corpus Christi Stage 3, which we expect to occur next year.”

Corpus Christi Stage 3 project will comprise up to seven midscale liquefaction trains.

The project will have a total nominal production capacity of around 10Mtpa.

This LNG supply deal comes amid increasing global oil prices due to surging fuel demand and tight supply.

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