ExxonMobil Is Exploring More Ways to Capture this $4 Trillion Opportunity
ExxonMobil (NYSE: XOM) firmly believes oil and gas will play a vital role in fueling the global economy in the decades ahead. One factor driving that view is the emergence of carbon capture and sequestration (CCS) as an increasingly economically viable solution to reducing carbon emissions. Exxon believes that CCS could become a $4 trillion global market by 2050.
That massive market potential is leading ExxonMobil to explore new CCS opportunities. It recently expanded its strategic relationship with pipeline company EnLink Midstream (NYSE: ENLC) to develop new solutions in the Gulf Coast region as the oil giant looks to expand its ability to capture this immense opportunity.
Exxon and EnLink have been working on CCS solutions since late 2022. The two companies signed a transportation service agreement to utilize existing and new pipelines owned by EnLink to transport carbon dioxide from the Mississippi River corridor in southeastern Louisiana to a 125,000-acre carbon dioxide storage site Exxon is developing in Vermilion Parish. Exxon initially reserved the capacity to transport 3.2 million metric tonnes annually starting early next year. It has the option to reserve up to 10 million metric tonnes per year.
Source Fool.com
