EnLink Midstream and Talos Energy Announce Complete Carbon Capture, Transportation, and Sequestration Services Solution

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Feb 15, 2022, 17:05 ET

DALLAS, Feb. 15, 2022 /PRNewswire/ -- EnLink Midstream, LLC (NYSE: ENLC) and Talos Energy Inc. (NYSE: TALO) announced today that they have executed a memorandum of understanding to jointly develop a complete carbon capture, transportation, and sequestration (CCS) solution for industrial-scale emitters in Louisiana. The joint service offering will be focused on the Mississippi River corridor from New Orleans to Baton Rouge, which is one of the largest concentrated sources of carbon dioxide (CO₂) emissions in the United States, and will utilize significant portions of EnLink's existing regional pipeline infrastructure of approximately 4,000 miles in Louisiana and Talos's recently acquired River Bend CCS site in east Louisiana, which includes approximately 26,000 acres of pore space and provides sequestration capacity of over 500 million metric tonnes in the area. EnLink and Talos have begun to market the offering to potential customers.

"We are proud to offer with Talos a complete CO₂ capture, transportation, and sequestration solution for customers in eastern Louisiana," said EnLink Chairman and CEO Barry Davis. "We plan to utilize our existing pipeline infrastructure and expertise in building midstream infrastructure to provide cost-efficient transportation, while reducing the environmental impact compared to new pipeline construction. We believe we are uniquely positioned in this regard, given the vast extent of our pipeline infrastructure in the region. Talos not only brings sequestration sites in close proximity to our pipelines, but also the downhole expertise to develop them. I continue to be inspired by the speed and execution from our carbon solutions teams, as we execute on our vision to become the future of midstream and creating sustainable value for EnLink and our unitholders."

"We are very happy to join forces with EnLink in the Mississippi River corridor from New Orleans to Baton Rouge to leverage their infrastructure and operational reliability as a midstream solution, initially focused on the River Bend CCS project in east Louisiana," said Talos President and CEO Timothy S. Duncan. "EnLink owns the last-mile pipe to most industrial emission sources in the region and will complement Talos' expertise in conventional geology, subsurface characterization, and track record of responsible operations. We are excited to collaborate to provide a one-stop solution that will lead to a simpler pricing model and, ultimately, accelerated decarbonization in a key industrial emissions region."

Utilizing EnLink's Existing Pipeline Infrastructure
EnLink and its predecessors have a long history of pipeline and processing operations in Louisiana. EnLink has identified existing pipelines to be utilized for CO₂ transportation from emissions sources in the Geismar, Donaldsonville, Plaquemine, and St. Charles areas. This existing pipeline infrastructure provides a cost-efficient solution and greatly reduces the environmental impacts compared to new pipeline construction in environmentally sensitive areas. Due to optionality and redundancy in EnLink's large pipeline network in the region, EnLink does not anticipate a material impact to its existing natural gas business from the repurposing of identified pipelines to CO₂ service.

Talos Subsurface Expertise and Sequestration Sites
Talos has recently entered into an agreement with a large landowner that will allow for multiple sequestration sites near EnLink's existing pipelines. This agreement includes sequestration rights to approximately 26,000 surface acres in Iberville, St. James, Assumption, and Lafourche Parishes. The acreage comprises three strategically located sites along the Mississippi River industrial corridor known collectively as the "River Bend CCS" project. Talos and EnLink believe the area provides excellent structural geology and rock properties for CO₂ sequestration, providing cumulative capacity of over 500 million metric tonnes. Talos has also secured a right of first refusal on approximately 63,000 additional acres in the area for phased, future expansion in order to meet expected future market demand. In addition to this significant sequestration acreage position, Talos will provide its subsurface operating expertise and extensive knowledge of Gulf Coast geology. Talos will be the project manager and operator of the injection, storage, and monitoring and will be joined by its partner, Storegga Limited.

Eastern Louisiana Offers High Concentration of Emissions Sources
The joint service offering is focused on one of the highest CO₂ emitting regions in the United States, which emits approximately 80 million metric tonnes of CO₂ per year. The Mississippi River corridor alone accounts for nearly two-thirds of the total industrial emissions in Louisiana. The emitting sources include ammonia, hydrogen, methanol, and base chemical facilities, as well as refinery and other petrochemical facilities. Potential customers are motivated to participate in carbon capture and sequestration to reduce emissions and to potentially offer "blue" products and participate in a low-carbon economy.

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, and NGL capabilities. 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.

About Talos Energy
Talos Energy (NYSE: TALO) is a technically driven independent exploration and production company focused on safely and efficiently maximizing long-term value through its operations, currently in the United States and offshore Mexico, both upstream through oil and gas exploration and production and downstream through the development of future carbon capture and storage opportunities. As one of the Gulf of Mexico's largest public independent producers, we leverage decades of technical and offshore operational expertise towards the acquisition, exploration and development of assets in key geological trends that are present in many offshore basins around the world. With a focus on environmental stewardship, we are also utilizing our expertise to explore opportunities to reduce industrial emissions through our carbon capture and storage initiatives along the U.S. Gulf Coast and Gulf of Mexico. For more information, visit www.talosenergy.com.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. Although these statements reflect the current views, assumptions and expectations of our 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 herein. Therefore, you should not rely on any of these forward-looking statements. All statements, other than statements of historical fact, included in this press release constitute forward-looking statements, including but not limited to statements identified by the words "forecast," "may," "believe," "will," "should," "plan," "predict," "anticipate," "intend," "estimate," "expect," "continue," and similar expressions. Such forward-looking statements include, but are not limited to, statements about future results or growth of our CCS business, objectives, strategies, expectations, and intentions, and other statements that are not historical facts. These and other applicable uncertainties, factors, and risks are described more fully in EnLink Midstream, LLC's and EnLink Midstream Partners, LP's filings with the Securities and Exchange Commission, including EnLink Midstream, LLC's and EnLink Midstream Partners, LP's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Neither EnLink Midstream, LLC nor EnLink Midstream Partners, LP assumes any obligation to update any forward-looking statements.

Investor Relations: Brian Brungardt, Director of Investor Relations, 214-721-9353, [email protected]
Media Relations: Jill McMillan, Vice President of Strategic Relations & Public Affairs, 214-721-9271, [email protected]

SOURCE EnLink Midstream, LLC