Spiritus Enters Preliminary Supply Pacts for CO2 in US EOR Market

Spiritus has entered into preliminary commercial arrangements to deliver carbon dioxide to upstream energy producers. The firm executed three separate letters of intent across multiple domestic hydrocarbon basins. Under these commercial frameworks, the company plans to provide carbon dioxide supply directly to oil and gas operators.

The collective volume outlined under the three agreements surpasses three million metric tons of carbon dioxide on an annual basis. This supply volume represents a substantial allocation directed into domestic industrial channels. The prospective delivery totals establish specific capacity benchmarks across the contracted counterparties.

The geographical footprint of the supply agreements covers three major oil and gas jurisdictions in the United States. Participating offtakers manage upstream assets situated in the Gulf Coast, the Midwest, and the Rocky Mountain regions. These three distinct operating areas represent the planned delivery destinations for the carbon dioxide.

The carbon dioxide volumes covered by the commitments are designated for enhanced oil recovery applications. Upstream operators deploy carbon dioxide injection across mature reservoirs to stimulate incremental hydrocarbon production. The agreements directly tie the planned gas deliveries to tertiary extraction programs in the designated basins.

At present, the commercial arrangements remain structured as letters of intent between Spiritus and the upstream operators. These preliminary pacts outline initial off-take parameters ahead of potential binding supply contracts. Additional operational timelines, infrastructure details, and transaction terms were not detailed in the release.