Williams Selects ExxonMobil For CO2 Transport And Storage At Louisiana Energy Gateway

Williams, the Tulsa, Oklahoma-based energy infrastructure company, has selected ExxonMobil to provide carbon dioxide transportation and permanent storage services for its proposed Louisiana Energy Gateway project, extending ExxonMobil's fast-growing portfolio of industrial carbon capture and storage customers along the U.S. Gulf Coast.

Under the agreement, ExxonMobil will transport and permanently store up to 2 million metric tons of CO2 per year captured from a proposed natural gas-fired power facility, which is designed to supply lower-emissions electricity to data centers and other large industrial customers in southwest Louisiana. The project remains subject to a final investment decision, permitting, and other customary approvals.

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The two companies already have ties in the region. Williams' Gillis treatment facility, located at the terminus of the Louisiana Energy Gateway pipeline system, currently sends a portion of its captured CO2 to ExxonMobil's Green Line for use in enhanced oil recovery outside Louisiana.

Extending a Fast-Growing Gulf Coast Network

The agreement strengthens ExxonMobil's strategy of pairing pipeline infrastructure with long-term geologic sequestration across Texas and Louisiana. The company's CO2 customer roster already includes CF Industries, which is capturing and storing CO2 from its Donaldsonville ammonia complex, along with Linde and Nucor, tied to hydrogen and steel production respectively. Combined with newer contracts covering natural gas processing and methanol production, ExxonMobil's committed CCS volumes now span industries from heavy manufacturing to power generation.

ExxonMobil operates the largest CO2 pipeline network in the United States, a system that spans more than 1,300 miles across the Gulf Coast. That existing footprint, along with permitted storage sites in Louisiana and Texas, gives the company a speed advantage when new customers like Williams are ready to move CO2 to permanent storage.

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A Bigger Bet on Data Center Power

The Louisiana Energy Gateway deal follows a similar arrangement ExxonMobil signed with Calpine last year, under which the companies agreed to transport and store up to 2 million metric tons of CO2 annually from Calpine's Baytown Energy Center to supply lower-carbon electricity to Texas customers. ExxonMobil is separately targeting a final investment decision by the end of 2026 on its first integrated low-carbon data center and has partnered with NextEra Energy on a natural gas plant aimed at the same market.

Williams, meanwhile, has been building its own Power Innovation portfolio of behind-the-meter generation projects for data center customers, including a gas-fired facility supporting a Meta data center campus in Ohio. Pairing that build-out with a dedicated CCS partner in Louisiana gives Williams another lower-emissions option as it courts hyperscale power customers along the Gulf Coast.

Federal 45Q tax credits, which pay project developers for permanently stored CO2, continue to underpin the economics of these arrangements and have helped drive similar power-sector agreements across the Gulf Coast over the past year.

Together, the agreement reflects growing demand for reliable, lower-carbon power as data centers and other large energy users expand across the region, with both companies continuing to add new projects to an increasingly active Gulf Coast CCS market.

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