ExxonMobil signs TX land deal for largest CO2 offshore storage site in US

Exxon Mobil Corp. has executed the largest offshore carbon dioxide (CO₂) storage lease in the US with the Texas General Land Office (GLO), the company said in a release Oct. 10.

The 271,068-acre site of submerged state land lies offshore in Jefferson, Chambers, and Galveston Counties. ExxonMobil said the location "complements the onshore CO₂ storage portfolio ExxonMobil is developing, and further solidifies the US Gulf Coast as a carbon capture and storage (CCS) leader." 

While no detailed terms were provided, the signing "will benefit the Texas Permanent School Fund (PSF) and provide millions in funding to Texas public school children by generating exceptional investment returns," GLO said in a separate release. In addition, ExxonMobil said, the agreement will reduce emissions and promote community development in nearby areas.

Under the terms of the agreement, ExxonMobil will have the right to inject CO₂ into geologically secure strata about 1-2 miles below the surface of the Gulf of Mexico, GLO said. 

ExxonMobil CO₂ network

ExxonMobil in 2023 acquired Denbury Inc., making the operator the largest CO₂ pipeline network holder in the US. That deal included a US CO₂ pipeline system of 1,300 miles, including nearly 925 miles of CO₂ pipelines in Louisiana, Texas, and Mississippi; one of the largest US markets for CO₂ emissions and location of 10 onshore sequestration sites (OGJ Online, July 13, 2023).