Libby Gas Plant Carbon Capture Project

DKL Delaware Operating – NM, LLC (Delek) is developing the Libby AGI No. 1 and No. 2 acid gas injection (AGI) project in Lea County, New Mexico, adjacent to the DKL Libby Gas Plant approximately 23 miles southwest of Hobbs. The project is designed to inject and permanently sequester an acid gas stream containing CO₂ and hydrogen sulfide (H₂S) captured from the plant’s amine unit into the deep Siluro-Devonian formation through two Class II injection wells. Libby No. 1 is expected to begin construction in Q1 2026 and enter operation in Q2 2026, while Libby No. 2 will provide redundant disposal capacity required by the New Mexico Oil Conservation Division (NMOCD). The project operates under EPA Subpart RR monitoring, reporting, and verification (MRV) requirements and is intended to reduce regional greenhouse gas emissions while supporting continued gas processing operations at the Libby Gas Plant. The injection interval consists of approximately 1,600 feet of porous and permeable Siluro-Devonian carbonate formations at depths beginning around 14,800 feet, with storage enhanced by natural karsting, vuggy porosity, and microfractures. The reservoir is sealed by the regionally extensive Woodford Shale upper confining zone, which is approximately 191 feet thick at the site, while the underlying Simpson Group provides additional lower confinement.