Occidental develops a CO₂ pipeline network in Southeast Texas

Occidental Petroleum, in partnership with Enterprise Products Partners, is setting up a CO₂ pipeline network in Southeast Texas to transport captured emissions, thus supporting carbon capture and storage projects in the Houston area.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Occidental Petroleum, in collaboration with Enterprise Products Partners, recently announced the creation of a vast CO₂ pipeline network in Southeast Texas. This initiative aims to support the ongoing carbon capture and storage hub being developed in the region and additional third-party partners interested in reducing their emissions. The project, currently in the implementation phase, will allow for the transportation of CO₂ captured by facilities located near the Houston Ship Channel, a major industrial zone in the United States.

The pipeline network, to be developed by Enterprise Products Partners, will transport CO₂ to the 1PointFive carbon sequestration hub, Occidental’s dedicated subsidiary for carbon capture and storage. According to the company, these pipelines will be co-located with existing infrastructure in the region, thereby facilitating logistical integration and minimizing additional impacts on the territory. This development aligns with a decarbonization strategy that takes into account existing infrastructures, optimizing both costs and operational efficiency.

Federal funding and carbon capture objectives

Occidental’s carbon capture project receives significant support from the U.S. federal government. Indeed, the United States Department of Energy (DOE) has allocated $500 million to 1PointFive to develop its Direct Air Capture (DAC) hub in South Texas. This hub aims to capture 500,000 metric tons of carbon annually, thus contributing to national efforts to achieve carbon neutrality. The federal investment is part of a national strategy to promote carbon capture technologies for industries struggling to reduce their emissions through conventional means.

Direct Air Capture (DAC) is an advanced technology that allows for the capture of CO₂ directly from the atmosphere. Unlike traditional capture methods, which generally focus on industrial emissions, DAC captures ambient carbon, offering a reduction solution with global impact potential. This type of technology is gradually becoming a central element in the U.S. decarbonization strategies, especially in hard-to-decarbonize sectors such as petrochemicals and steel production.

Third-party partnerships and carbon credit pricing

So far, Occidental has not specified which third-party partners will supply the captured CO₂ in the Houston area, but further announcements are expected as the project progresses. These partnerships could include industrial companies nearby, seeking to reduce their emissions sustainably and to benefit from the economic opportunities offered by the commercialization of carbon credits.

According to recent market assessments, the price of carbon credits generated by direct air capture facilities, such as those operated by Occidental, was estimated at around $145 per metric ton of carbon. This figure, however, may vary depending on the growing demand for high-quality carbon credits, particularly those certified by DAC. Additionally, the carbon credit tracking website, CDR.fyi, recently listed a spot price of $470 per metric ton of carbon for credits captured directly from the air, demonstrating the growing interest in these technologies.

Recent commitments and growth perspectives

The company 1PointFive has already made notable progress in terms of carbon credit sales. To date, 1PointFive has captured and delivered 100 metric tons of carbon via DAC, with cumulative sales of credits reaching 1.3 million metric tons. Among recent significant transactions, Microsoft acquired 500,000 metric tons of DAC carbon credits last July, a clear indication of major corporations’ commitment to reducing their carbon footprint and their support for new decarbonization technologies.

The United States Department of Energy recently proposed a carbon management strategy aimed at encouraging the deployment of capture technologies for priority use cases. This approach is especially intended for industries where there are few or no alternatives to emissions reduction. Occidental and its partners’ initiatives fit well within this strategy by providing a tangible solution to current environmental challenges while paving the way for new economic opportunities.

Japan and Malaysia have signed a preliminary cooperation protocol aiming to establish a regulatory foundation for cross-border carbon dioxide transport as part of future carbon capture and storage projects.
Green Plains has commissioned a carbon capture system in York, Nebraska, marking the first step in an industrial programme integrating CO₂ geological storage across multiple sites.
The price of nature-based carbon credits dropped to $13.30/mtCO2e in October as a 94% surge in September issuances far outpaced corporate demand.
Driven by the energy, heavy industry and power generation sectors, the global carbon capture and storage market could reach $6.6bn by 2034, supported by an annual growth rate of 5.8%.
Article 6 converts carbon credits into a compliance asset, driven by sovereign purchases, domestic markets, and sectoral schemes, with annual demand projected above 700 Mt and supply constrained by timelines, levies, and CA requirements.
The GOCO2 project enters public consultation with six industrial players united around a 375 km network aiming to capture, transport and export 2.2 million tonnes of CO2 per year starting in 2031.
TotalEnergies reduced its stake in the Bifrost CO2 storage project in Denmark, bringing in CarbonVault as an industrial partner and future client of the offshore site located in the North Sea.
The United Kingdom is launching the construction of two industrial carbon capture projects, backed by £9.4bn ($11.47bn) in public funding, with 500 skilled jobs created in the north of the country.
Frontier Infrastructure, in partnership with Gevo and Verity, rolls out an integrated solution combining rail transport, permanent sequestration, and digital CO₂ tracking, targeting over 200 ethanol production sites in North America.
geoLOGIC and Carbon Management Canada launch a free online technical certificate to support industrial sectors involved in carbon capture and storage technologies.
AtmosClear has chosen ExxonMobil to handle the transport and storage of 680,000 tonnes of CO₂ per year from its future biomass energy site at the Port of Baton Rouge, United States.
The Dutch start-up secures €6.8mn to industrialise a DAC electrolyser coupled with hydrogen, targeting sub-$100 per tonne capture and a €1.8mn European grant.
Japan Petroleum Exploration is preparing two offshore exploratory drillings near Hokkaidō to assess the feasibility of CO₂ storage as part of the Tomakomai CCS project.
The Singaporean government has signed a contract to purchase 2.17 million mtCO2e of carbon credits from REDD+, reforestation and grassland restoration projects, with deliveries scheduled between 2026 and 2030.
The Canadian government is funding three companies specialising in CO2 capture and utilisation, as part of a strategy to develop local technologies with high industrial value.
European carbon allowance prices reached a six-month high, driven by industrial compliance buying ahead of the deadline and rising natural gas costs.
Zefiro Methane Corp. completed the delivery of carbon credits to EDF Trading, validating a pre-sale agreement and marking its first revenues from the voluntary carbon market.
Hanwha Power Systems has signed a contract to supply mechanical vapour recompression compressors for a European combined-cycle power plant integrating carbon capture and storage.
A prudent limit of 1,460 GtCO2 for geologic storage reshapes the split between industrial abatement and net removals, with oil-scale injection needs and an onshore/offshore distribution that will define logistics, costs and liabilities.
Frontier Infrastructure Holdings drilled a 5,618-metre well in Wyoming, setting a national record and strengthening the Sweetwater Carbon Storage Hub’s potential for industrial carbon dioxide storage.

All the latest energy news, all the time

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.