TotalEnergies E&P USA Inc. has agreed to acquire Talos Low Carbon Solutions LLC, which includes the entire carbon capture and sequestration (CCS) business of Talos Energy Inc., for a total of about $148 million. The deal is expected to be completed later today, after which TotalEnergies will have ownership stakes in various CCS projects in Louisiana and Texas.
Upon completion of the acquisition, TotalEnergies will own a 25% share in Bayou Bend CCS LLC, where Chevron is the operator with a 50% stake and Equinor holding a 25% interest. Additionally, TotalEnergies will have a 65% operated interest in Harvest Bend CCS LLC in Louisiana and a 50% interest in Coastal Bend CCS LLC in Texas.
The Bayou Bend project aims to provide a carbon transportation and storage solution for industrial emitters in the Houston Ship Channel and Beaumont – Port Arthur region on the Texas Gulf Coast. This project complements TotalEnergies’ existing assets in the region, including the Port Arthur refinery and petrochemicals assets in La Porte, helping to reduce direct emissions from the company’s US operations.
Covering approximately 600 sq km, the Bayou Bend project has licenses for CO2 storage both offshore and onshore. It has the potential to store several hundred million tons of CO2, contributing to TotalEnergies’ efforts in reducing greenhouse gas emissions.
Due to the distance of Coastal Bend and Harvest Bend from TotalEnergies’ current assets, the company plans to sell its interest in these projects after the deal is finalized. This strategic decision aligns with TotalEnergies’ focus on managing and optimizing its portfolio to maximize value and efficiency.
