Pace Global

Lenders’ Independent Market Report for Carbon Capture and Enhanced Oil Recovery

Clien Need
Client Need:
A major Export Credit Agency coordinator acting on behalf of the project sponsors.


Our Role
Our Role:
Pace Global developed a Lenders’ Independent Market Report with the goal of evaluating the options and potential for CO2-Enhanced Oil Recovery at the client’s Gulf Coast oil field. As part of this engagement, Pace Global evaluated the project sponsors’ ability to secure limited or non-recourse project financing in the context of the project’s existing commercial and operational structure. The Project involved the development of a post-combustion CO2 capture, utilization, and sequestration (CCUS) facility and associated pipeline to transport the CO2 to an existing oil field for EOR purposes. The Project additionally involved the construction of a combined cycle gas turbine power facility to supply dedicated power and steam to the CCUS plant and excess power to the ERCOT market. The IMR consisted of four main components: a crude oil and gas market outlook; a review of the Project’s oil marketing arrangements; a CO2 market outlook; and a power market assessment.


Results
Results:
Pace Global’s expert analysis proved essential to the financing process, equipping the project lenders with the information they needed to properly evaluate project risk and mitigate financial exposure. The project received its first disbursement in 2014.
Pace Global