Deal Description: Lapis Energy, LP (“Lapis”) announced today that it has formed a joint venture with a subsidiary of Denbury Inc. (NYSE: DEN, “Denbury”) to design, implement, and operate a carbon dioxide (“CO2”) sequestration (“CCS”) project at Lapis Energy’s 14,000-acre carbon storage site located in St Charles Parish, Louisiana, approximately 20 miles west of New Orleans. Each party will have a 50 percent interest in a newly formed project company, Libra CO2 Storage Solutions LLC (“Libra”). Under the Libra transaction structure, Lapis will lead implementation of the project for Libra through the Class VI permitting process, pre-FID phase and initial construction, with Denbury assuming operatorship and later construction management upon commencement of injection.
Depending on the scale and pace of emissions agreements dedicated to the site, Denbury intends to connect the sequestration site to its existing CO2 pipeline network in southeast Louisiana with a 45-mile pipeline connection. As part of the agreement, Denbury has committed volumes to support the initial development of the site, contingent upon achieving Class VI injection approval and project sanction, with first injection scheduled for 2027. Libra believes that the site has the potential to hold at least 200 million metric tons of CO2 and, because of its close proximity to industrial hubs, has the potential to become a regional hub decarbonization site.
Baker Botts L.L.P. represented Lapis Energy, LP and Libra in the transaction.
For more information, please see Lapis Energy, LP’s news release by clicking here.
Baker Botts Lawyers/Office Involved:
Transaction Leads: Jason Bennett (Partner, Houston); Sarah Dodson (Partner, Dallas); Kyle Doherty (Senior Associate, Houston); Natasha Gandhi (Senior Associate, Dallas); Taylor López (Senior Associate, Houston)
Real Estate: Daniel Kruger (Partner, Washington)
Tax: Jon Lobb (Partner, Houston); Barbara De Marigny (Partner, Houston); Jared Meier (Senior Associate, Houston)
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