Denbury up on deal to transport, store CO2 from Mitsubishi's ammonia project
21/09/2021 14:14
** Shares of oil and gas co DEN.N up 6.1% at $74.00 in
premarket trade
** Co and Mitsubishi Corp 8058.T have executed a term
sheet for transport and storage of CO2 captured from
Mitsubishi's proposed ammonia project on the U.S. Gulf Coast
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** DEN will transport and sequester all of the CO2 captured
at Mitsubishi's ammonia facilities which may be utilized by the
company in its enhanced oil recovery operations or,
alternatively, for storage in other geologic sequestrations
sites
** Initial term of agreement is 20 year, with an ability to
extend; total volumes under the arrangement could surpass 50 mln
metric tons of CO2
** "Expect shares to outperform in today's trading on the
back of this first deal with expectations for additional deals
along the CCS (capture and storage) value chain into year-end;
We believe negotiations remain underway with multiple parties" -
Siebert Williams Shank & Co
** Brokerage says while revenues from this initial agreement
will not materialize until the latter part of the decade, this
is a positive announcement that showcases management's execution
on its CCS business plan
** DEN is up 171.4% this year
(Reporting by Arunima Kumar in Bengaluru)
((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94))