Occidental Subsidiary and Enbridge Partner on Major Sequestration Hub

By Michael Kern - Sep 11, 2025

1PointFive, a subsidiary of Occidental, and Canadian energy company Enbridge Inc. announced a new joint venture to develop a carbon capture and sequestration hub in Louisiana. The 50-50 partnership will focus on the Pelican Sequestration Hub, a project designed to store carbon dioxide (CO2) deep underground, according to a press release issued today.

The Pelican Sequestration Hub will be located in Livingston Parish, La. According to the companies, 1PointFive will develop and operate the sequestration facilities, while Enbridge will be responsible for building and managing the pipelines that transport CO2 from industrial customers to the hub. The project aims to provide a solution for capturing emissions from industrial operations in the region.

The hub is anchored by a 25-year agreement to sequester approximately 2.3 million metric tons of CO2 per year from a planned low-carbon ammonia production facility. This facility is a joint venture between CF Industries, JERA Co., Inc., and Mitsui & Co., Ltd., and is located in Ascension Parish, La. The agreement represents a significant long-term commitment to the project's capacity.

The joint venture reflects a broader trend in the energy sector, where companies are increasingly investing in carbon capture, utilization, and storage (CCUS) technologies to meet climate targets and address emissions. This development in Louisiana aligns with the state’s focus on attracting investments in low-carbon industries. The Pelican Sequestration Hub is a notable example of how large-scale infrastructure projects are being developed to support the decarbonization of heavy industry.

Jeff Alvarez, president of 1PointFive Sequestration, commented on the partnership, saying, "We look forward to combining our expertise managing carbon dioxide with Enbridge’s deep capabilities in energy transportation to create a comprehensive solution to unlock value from carbon dioxide." He added that he believes the project could strengthen Louisiana's industries and provide new opportunities for economic development.

Occidental has over 50 years of experience in carbon dioxide management, including enhanced oil recovery projects. According to the company, it has stored up to 20 million metric tons of CO2 per year. This history in the field provides a foundation for the new sequestration hub. The project is an example of how established energy companies are diversifying their operations to include carbon management services.

By Michael Kern for Oilprice.com