Colleen Jarrott Quoted in Hart Energy on Expansion of Exxon Mobil's Carbon Capture and Sequestration (CCS) Capabilities Following $4.9 Billion Denbury Acquisition
Hart Energy quoted Hinshaw partner Colleen Jarrott on the subject of Exxon Mobil's $4.9 billion acquisition of Denbury Inc. The deal includes Denbury's 1,300 miles of CO2 pipelines and its carbon capture and sequestration (CCS) efforts. Jarrott highlighted Exxon's capability to offer a comprehensive midstream CCS development package following the acquisition.
According to Jarrott, everybody "is now thinking, or rethinking, [CO2] transportation." "They are going to the midstreamers," she added. "And there is such a spaghetti [network] between New Orleans and Houston. The conversations are happening."
Specific parties and locations are confidential, but Jarrott suggested that the early sense of conversation follows a figurative path from injection well to smokestacks. "Things have been quiet on the emitter side, but deals are in the works," Jarrott said.
"The emitters are the ones being approached. The folks who gobbled up pore space early on are now looking to get CO2 there."
Jarrott also noted that multi-party CCS deals are more complex than two-party deals, so any potential increase would likely happen over several months instead of weeks. Recent major deals suggest stability rather than rapid growth.
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"CCS Midstream Chatter Grows After Exxon Mobil Megadeal" was published by Hart Energy on September 11, 2023.