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EPA and Texas Railroad Commission Sign Memorandum of Agreement for Permitting Geologic Storage of Carbon Dioxide

LCG, April 29, 2025--Officials from the U.S. Environmental Protection Agency (EPA) and Texas Railroad Commission (RRC) signed a memorandum of agreement (MOA) today outlining the state’s plans to administer programs related to carbon storage wells, known as Class VI wells. The MOA signing is a required step in the RRC’s application to be granted authority to permit Class VI wells in the state of Texas. EPA is currently preparing a proposed approval of RRC’s primacy application.

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Calpine and ExxonMobil Sign CO2 Transportation and Storage Agreement for CCS Project in Texas

LCG, April 24, 2025--Exxon Mobil Corporation (ExxonMobil) announced yesterday an agreement with Calpine Corporation (Calpine) to transport and permanently store up to 2 million metric tons per annum (MTA) of CO2 from Calpine’s Baytown Energy Center, a natural gas-fired facility located near Houston, Texas. This is part of Calpine’s Baytown Carbon Capture and Storage (CCS) Project that is designed to add CCS for the facility’s CO2 emissions. The Calpine facility could then provide a 24/7 supply of low-carbon electricity to the Texas grid plus steam to nearby industrial facilities.

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Industry News

FERC Approves AES Sparrows Point LNG Terminal

LCG, January 16, 2009--The Federal Energy Regulatory Commission (FERC) yesterday approved the proposed Sparrows Point LNG (liquefied natural gas) Terminal, together with the connecting interstate pipeline designed to receive and deliver 1.5 Bcf/day of natural gas to Northeast and Mid-Atlantic energy markets. The LNG terminal and pipeline are proposed by subsidiaries of The AES Corporation.

The site for the proposed LNG terminal is at Sparrows Point, southeast of Baltimore in Baltimore County, Maryland. LNG tankers will deliver liquefied natural gas to the terminal, where there will be storage capacity of up to 480,000 cubic meters of LNG. The gas will be vaporized at the terminal and transported via pipeline to the natural gas transportation network for use throughout the Mid-Atlantic and Northeast energy markets.

The Mid-Atlantic Express pipeline project will extend in a northeasterly direction approximately 88 miles and will use 30-inch diameter pipe. The route will follow existing utility and/or roadway rights-of-way to the maximum extent practicable.

The FERC voted 4-1 to approve the project, and the approval includes 169 conditions that will protect public safety and mitigate any adverse environmental impact.

The project was approved over opposition from Maryland's congressional delegation, which requested the decision be delayed until the President-elect takes office. Stated concerns included that the LNG facility would pose a security risk and threaten endangered Chesapeake Bay species.
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