ExxonMobil Signs Largest U.S. Lease for Offshore Carbon Storage

ExxonMobil has doubled down on its plans for subsea carbon storage, signing the largest ever seabed lease for carbon sequestration in the United States.

Exxon announced Thursday that it has purchased 271,000 acres worth of lease rights from the Texas General Land Office. The areas are located in shallow water just off the coast of Texas in Chambers, Jefferson and Galveston counties, near the Galveston Bay and Beaumont petrochemical hubs. 

Exxon is advancing a longtime plan to add CO2 capture and storage to its service portfolio along the Gulf Coast, where there are a large number of oil and gas stakeholders with an interest in mitigating their emissions. Exxon already operates the largest CO2 pipeline network in the United States, and it also holds 69 offshore lease blocks in federal waters for CO2 sequestration. 

Exxon did not disclose the terms, but it said that the lease payments will benefit the Texas Permanent School Fund. In a statement, Texas GLO Commissioner Dawn Buckingham emphasized the importance of funding childhood education as part of the deal. 

"This is yet another sign of our commitment to CCS and the strides we’ve been able to make," said Dan Ammann, president of ExxonMobil Low Carbon Solutions. "With our growing roster of customers ready to deploy CCS, we’ll be driving substantial emissions reductions along the Gulf Coast through a comprehensive solution that includes capture, transportation, and storage—capabilities that make us a clear leader."