ExxonMobil Fires Up Second CCS Hub in Louisiana with NG3

ExxonMobil has begun transporting and permanently storing CO₂ from its New Generation Gas Gathering (NG3) system in Gillis, Louisiana, marking its second active commercial CCS operation in the state.

This isn't a pilot or a feasibility study. It's fully operational, and it's moving real carbon volumes right now.

What the NG3 Project Actually Does

The NG3 system gathers natural gas produced across East Texas and Louisiana, then routes it to the Gillis treatment facility north of Lake Charles. There, up to 1.2 million metric tons of CO₂ per year is separated from the gas stream before the treated product heads to Gulf Coast markets, including LNG export terminals.

By removing CO₂ before delivery, the project directly lowers the carbon intensity of natural gas supplied to downstream customers. That matters especially for LNG buyers in Asia and Europe who are increasingly demanding lower-carbon fuel supplies.

The captured CO₂ is currently stored in permanent geologic formations through enhanced oil recovery. ExxonMobil plans to transition toward dedicated permanent storage sites over time.

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Building on a Growing Gulf Coast CCS Network

ExxonMobil's first Louisiana project came online in July 2025, capturing CO₂ from CF Industries' Donaldsonville Complex to support low-carbon ammonia production. NG3 is the next step, and it won't be the last.

The company has two more CCS projects lined up for 2026, with customers including Linde and Nucor. ExxonMobil now holds more contracted CO₂ volumes than any other company globally, spanning steel, ammonia, natural gas processing, industrial gases, methanol, and power generation.

That confidence shows up in the numbers. With 3.2 million metric tons already contracted across its two active Louisiana projects alone, ExxonMobil's CCS network along the Gulf Coast is scaling faster than any comparable commercial program in the world.

The company operates the largest CO₂ pipeline network in the U.S., a 1,300-mile system it acquired through its $4.9 billion acquisition of Denbury Resources in 2023. That infrastructure is the backbone making projects like NG3 possible at commercial scale.

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Why Louisiana Keeps Winning on CCS

Louisiana isn't just hosting these projects by accident. The state's geology, industrial density, and regulatory framework make it one of the best environments for large-scale carbon capture deployment anywhere in the country.

The state received EPA approval for Class VI well primacy in December 2023, effective February 2024, giving it direct authority to permit carbon storage wells. That streamlines project timelines considerably. And with offshore storage development now also accelerating in state coastal waters, Louisiana's storage capacity is essentially a strategic asset at the national level.

As more projects come online, Louisiana's CCS infrastructure is expected to strengthen its position across key sectors, including steel, fertilizer, methanol, and power. The ability to offer low-carbon products through CCS is also starting to attract large-scale industrial tenants like data centers to the state.

What Comes Next

ExxonMobil sees CCS as a potentially $4 trillion global market by 2050, and its Gulf Coast operations are positioned at the center of it. With two more Louisiana startups coming this year and a low-carbon data center project in early-stage development, the company is moving well beyond proof-of-concept.

For the Gulf Coast's industrial corridor, each new CCS startup signals that large-scale decarbonization is no longer a future goal. NG3 proves that capturing and storing carbon at commercial scale, with real customers and real infrastructure, is already the present.

The CCS playbook being written in Louisiana could define how the world's hardest-to-abate industries lower their emissions for decades to come.