Trace Midstream II formed to pursue CCS in North America

By Trace Midstream | September 28, 2022

Trace Midstream (“Trace”) announced on September 27th that it has secured an equity commitment of $400 million from Quantum Energy Partners to form Trace Midstream Partners II, LLC, and its affiliate, Trace Carbon Solutions, LLC (collectively, “Trace II” or the “Company”). Headquartered in Houston, Texas, the Company will be focused on developing carbon capture and sequestration (“CCS”) assets and supporting midstream infrastructure across North America. CCS is the process of capturing CO2 emissions and converting the CO2 into a fluid form that can be safely transported and sequestered underground permanently. CCS reduces the amount of CO2 that would have entered the atmosphere otherwise and has been recognized as a critical strategy in the global initiative to combat climate change.

In support of its CCS focus, Trace II has appointed industry veteran David Dell’Osso as its Chief Operating Officer. David has extensive subsurface expertise as well as a proven track record in the development and operations of large-scale upstream assets and midstream infrastructure. Prior to Trace II, David served as Executive Vice President and Chief Operating Officer for Parsley Energy, a leading public E&P company, until its merger with Pioneer Natural Resources (NYSE: PXD). Prior to Parsley, David spent 13 years with Southwestern Energy Company (NYSE: SWN), where he most recently served as Senior Vice President and General Manager of the Northeast Appalachia Division.

“We are excited to continue our partnership with Quantum as we pursue the development of CCS assets and the midstream infrastructure required to service these projects,” said Josh Weber, CEO of Trace II. “With the addition of David and a dedicated subsurface team, we have assembled the in-house expertise required to develop, construct, and operate projects across the CCS value chain. We look forward to developing and commercializing projects that allow our customers to achieve their decarbonization goals.”

“The Trace team has a proven track record and history of success in both the traditional midstream and upstream space. Our equity commitment demonstrates our continued confidence in the Trace organization and their project development capabilities,” said Blake Webster, Managing Director of Quantum Energy Partners. “We’re excited about the opportunity across the CCS value chain and believe that the Trace team is well positioned to become a leading developer and operator of CCS assets.”