Dallas-based Lucid Energy Group said last week the U.S. Environmental Protection Agency approved its monitoring, reporting and verification plan to store carbon dioxide from its Red Hills complex in northern Delaware Basin in Lea County. The carbon capture and sequestration project will permanently store emissions in existing and permitted disposal wells. One of the largest private midstream operators in Permian Basin, Lucid has 2,000 miles of pipeline, 150,000 hp compression, and 1.2 Bcf of gas processing capacity in operation or under construction.
In the plan, CO2 will be removed when natural gas is processed and treated at Red Hills for customers’ gas streams. Lucid provides midstream services for more than 50 customers in New Mexico and west Texas, including ExxonMobil and Marathon Oil. Red Hills includes five plants with combined capacity of 920 MMcfd (sixth plant in development). Lucid said Jan. 11 it will develop the CCS project by modifying and expanding existing operations at Red Hills.
Mike Latchem, CEO, said, “Lucid currently removes more CO2 from Permian Basin shale production than any other midstream operator… Lucid is the perfect candidate to develop the largest CCS project in the Permian Basin.”