News and Articles

• ExxonMobil launches second commercial CCS project in Louisiana at NG3 Gillis facility
• Up to 1.2 million metric tons of CO2 per year to be captured from natural gas stream
• Combined active CCS projects account for up to 3.2 million metric tons annually
• Two additional CCS projects scheduled to start operations in 2026
• Louisiana attracts $61 billion in emissions reduction investments linked to CCS growth

ExxonMobil has started up its second commercial carbon capture and storage project in Louisiana, expanding its presence in a state that has become central to its lower-emissions strategy. The company is now transporting and storing captured carbon dioxide from the New Generation Gas Gathering project in Gillis, marking its second active CCS operation in Louisiana.

The NG3 system gathers natural gas produced in East Texas and Louisiana and routes it to the Gillis treatment facility. There, up to 1.2 million metric tons of CO2 per year is expected to be separated from the gas stream before the treated natural gas is delivered to Gulf Coast markets, including liquefied natural gas export terminals. By removing CO2 prior to distribution, the project lowers the carbon intensity of the fuel supplied to downstream customers.

This latest start-up follows the launch in July 2025 of CO2 transportation and storage services for CF Industries’ Donaldsonville Complex. That project supports the production of low-carbon ammonia by capturing and permanently storing emissions that would otherwise be released. Together, the two active projects represent contracted volumes of up to 3.2 million metric tons of CO2 per year, accounting for roughly one-third of ExxonMobil’s committed CCS capacity.

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The company is currently storing CO2 from both projects in permanent geologic formations through enhanced oil recovery operations, with plans to shift toward dedicated storage sites over time. Two additional CCS developments are scheduled to begin operations in 2026, further expanding the company’s carbon management portfolio in the region.

Louisiana’s geology and established industrial base have made it a focal point for carbon capture deployment. Supporters argue that CCS can help sustain key sectors such as steel, fertilizer, methanol, and power generation by lowering the emissions profile of their products while maintaining production. The growing network of capture and storage projects is also being linked to broader economic development, with the state attracting significant investment tied to emissions reduction initiatives.

Companies developing large-scale industrial projects, including data centers, are increasingly considering locations where low-carbon energy and products are available. Louisiana has already recorded about $61 billion in new emissions reduction investments, reflecting the scale of activity underway as CCS infrastructure expands.