Collaboration Sets Sail for Carbon Capture and Storage
Chevron Corporation’s Chevron New Energies recently signed a Memorandum Of Understanding (MOU) with JX Nippon Oil & Gas Exploration Corporation to pave the way for the development of the CCS value chain.
The agreement aims to establish a framework for assessing the feasibility of exporting Carbon Dioxide (CO₂) from Japan to Carbon Capture and Storage (CCS) projects in Australia and other nations in the Asia Pacific region.
This entails capturing CO₂ emissions from industries in Japan, transporting them by ship from Japan to Chevron’s greenhouse gas storage portfolio in Australia, and exploring transboundary policies as well as potential CO₂ storage sites in the region.
Commitment to Lower Carbon Aspirations
Chris Powers, Vice President of Carbon Capture, Utilization, and Storage (CCUS) at Chevron, emphasized the importance of large-scale CCS value chain projects in advancing the lower carbon ambitions of the Asia Pacific region. Powers underscored the necessity for long-term partnerships in achieving these objectives.
Unexpected Turbulence in the Market
In a separate development, tensions surfaced as Exxon Mobil Corporation (XOM) initiated arbitration proceedings against Chevron over its proposed acquisition of Hess Corporation’s (HES) stake in the Guyana oilfield. The move, revealed by Chevron CEO Michael Wirth as reported by Reuters, came as a surprise to Chevron.
The dispute poses a threat to Chevron’s $53 billion takeover of Hess as Exxon asserts its right of first refusal for Hess’s stake. Wirth disclosed ongoing discussions between Chevron and Exxon regarding the issue.
Market Response and Outlook
As of the latest update on Tuesday, CVX shares were trading up by 0.61% at $156.36.
