Occidental Signs Two CO₂ Supply Deals for Permian Operations

The project developers will secure the CO₂ and fund and build the infrastructure needed to transport it by pipeline. The projects remain subject to final investment decisions, Occidental said.

Together, they involve nearly 100 miles of new pipeline in the Delaware Basin, spanning eastern New Mexico and west Texas. The lines will connect with the existing network supplying the Permian Basin, which also extends across those states. Occidental said the new infrastructure is being designed to accommodate connections from other CO₂ sources in the future.

The company is also pursuing supply agreements for carbon dioxide from additional third-party sources of anthropogenic CO₂. In oil production, injecting CO₂ into older wells can reduce oil viscosity, restore pressure and increase the amount of oil recoverable.