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Clifford Chance

Clifford Chance
Jonathan Castelan

Jonathan Castelan

Partner

Partner
Jonathan Castelan

Jonathan Castelan is a partner in Clifford Chance’s Houston office and co-head of the Energy Transition Group. He focuses on energy and infrastructure transactions.

Jonathan has broad experience across various sectors of the energy industry, including energy infrastructure, energy transition, and traditional oil and gas. He advises clients on their carbon capture, utilization and sequestration (CCUS) projects, hydrogen projects, and renewable fuel projects. Specifically, Jonathan advises clients in connection with construction-related contracts, purchase and sale documentation, supply and offtake arrangements, as well as acquisitions, divestitures and joint ventures.

Energy Transition

CCUS and DAC

  • ExxonMobil Low Carbon Solutions on its carbon capture and storage agreement with Illinois-based CF Industries to transport and permanently store up to 500,000 metric tons per year of CO2 from CF Industries’ complex in Yazoo City, Mississippi
  • A private multinational energy infrastructure company in the construction of 350-mileinterstate steel trunk line that is capable of transporting 12 million tons of CO2 per year and that will service customers looking to decarbonize across the Midwest and Ohio River Valley
  • ExxonMobil Low Carbon Solutions on its carbon capture and storage agreement with Nucor Corporation, one of North America’s largest steel producers. Under the agreement, XOM will capture, transport and store up to 800,000 metric tons per year of CO2 from Nucor’s manufacturing site in Convent, Louisiana
  • ExxonMobil in connection with its carbon capture and storage agreement with Linde to transport and permanently store up to 2.2 million metric tons a year of CO₂ from Linde’s US$1.8 billion clean hydrogen plant in Beaumont, Texas, scheduled to start operating in 2025. This is ExxonMobil’s largest such project to date.
  • ExxonMobil in its collaboration with CF Industries and EnLink Midstream on the largest-of-its-kind emissions-reduction project in Louisiana to capture and permanently store up to two million metrics tons of CO2 annually
  • Chevron New Energies in its joint venture with Talos Low Carbon Solutions and Carbonvert to develop the Bayou Bend CCS offshore carbon capture and sequestration hub, the first and only offshore lease in the US dedicated to CO2 sequestration
  • Brookfield Renewable in connection with its joint venture with California Resources Corporation to create a carbon management partnership focused on carbon capture and sequestration development
  • Occidental Petroleum and its Low Carbon Ventures business on a CCS project with White Energy intended to qualify under the 45Q credit program and California’s Low Carbon Fuel Standard and other matters in connection with CCS
  • Chevron New Energies in connection with the deployment and ongoing financing of a ground-breaking bioenergy with carbon capture and sequestration (BECCS) project designed to produce carbon negative power in Mendota, California
  • Representing a private company in connection with an investment in a direct air capture project in the southern US

Hydrogen and eFuels

  • Internationally publicly traded company in connection with an investment in a green methane project in the southern U.S.
  • Private developer on the construction and project financing of a significant green methanol project in the southeastern U.S.
  • Woodside Energy in the development of the H2OK Hydrogen Project located in Oklahoma
  • A public company in connection with the development of a green hydrogen project in Texas
  • A private renewable energy company in connection with the development of a green hydrogen project in Texas
  • Bakken Energy in the development of a hydrogen hub located in North Dakota
  • Chevron U.S.A. Inc. in connection with the operation of its joint venture with Bunge Limited for oilseed processing and the purchase of seed oil for use as renewable feedstock to manufacture transportation fuels with lower lifecycle carbon intensity
  • Oaktree Capital Management on commercial and industry matters related to Montana Renewables, LLC’s US$300 million convertible debt investment from funds managed by Oaktree Capital
  • Quanta Services, in its proposed US$2.7 billion acquisition of Blattner Energy, a leading utility-scale renewable energy infrastructure solutions provider in the North America, including the evaluation of renewable energy infrastructure construction agreements
  • A public industrial gas company in its US$1 billion investment in connection with the engineering, design, and construction of a renewable diesel plant
  • A public company in a cross-border transaction for the offtake and supply of more than 5,500 bpd of recycled lubricating oils in partnership with a supermajor oil company

Sustainable Aviation Fuel

  • A private company in connection with the development of a SAF project in the U.S. as well as associated offtake arrangements
  • Alder Fuels, a cleantech company, on its joint venture with United and Honeywell to create one of the largest sustainable biofuel ventures in aviation history and its associated purchase agreement with United for the sale and purchase of 1.5 billion gallons of sustainable aviation fuel (SAF)
  • American Airlines in its US$100 million investment to become an anchor partner to Breakthrough Energy Catalyst, a groundbreaking collaborative effort to accelerate the clean energy technologies, including sustainable aviation fuel (SAF)
  • A private company in connection with SAF offtake commitments in the U.S. and Europe

Forestry and Carbon Credits

  • Paracel S.A., in connection with the project development of an afforestation and pulp mill project in Paraguay
  • Emergent Forest Finance Accelerator Inc., a U.S. non-profit organization, in its mobilization of more than US$1 billion in financial commitments from corporations and governments to finance forest conservation in tropical and subtropical forest jurisdictions, including in Costa Rica, Ecuador, Ghana, Nepal, and Vietnam

Power and Battery Energy Transition Projects

  • A private battery storage company in connection with the drafting and negotiation of an engineering, procurement, and construction agreement for a first of its kind utility-scale battery facility in the United States
  • A privately held renewable energy company in the negotiation of engineering, procurement, and construction agreements for a battery storage facility with associated solar power generation. A major international E&P company in connection with the construction of a first-of-its-kind experimental solar facility in California
  • An electric vehicle charging station manufacturer in the negotiation of an international supply and distribution agreement
  • Energia Eolica del Sur in connection with its US$1.2 billion investment in the development of a 396MW wind park consisting of 132 turbines

Infrastructure

  • An International EPC contractor in connection with EPC agreements for offshore production facilities and pipelines in the U.S., Brazil, and Mexico
  • Multiple clients in more than 30 international and domestic shipyard contracts for newbuilds as well as refurbishments and upgrades with shipyards in the United States, Ghana, Cameroon, Singapore, China, and Brazil
  • A midstream company in connection with commercial agreements for the utilization of fiber optic communications infrastructure (including the fiber optic cables and associated equipment) for use in leak detection equipment associated with oil and gas pipelines
  • Riverstone Holdings in its US$2.685 billion acquisition of International-Matex Tank Terminals from Macquarie Infrastructure Corporation
  • Sasol in its US$2 billion sale of a 50% stake in Lake Charles Chemical Plant to form a joint venture with LyondellBasell, a multinational chemical company, including drafting and negotiating supply agreements for certain ethane cracker feedstocks, treating chemicals, as well as tolling/offtake, and supply agreements for each joint venture partner to supply feedstock, offtake product, and market product from the ethane cracker
  • The conflicts committee of Shell Midstream Partners in connection with its acquisition of Royal Dutch Shell plc’s interest in Mattox Pipeline Company, LLC, and certain logistics assets at the Shell Norco Manufacturing Complex, totaling US$4.4 billion
  • A public oil and natural gas company in its offtake agreement with a public midstream service provider for the transport and sale of Y-Grade
  • HarbourVest Partners, as part of a consortium, in a joint venture and drilling program with W&T Offshore to drill up to 14 specified projects in the Gulf of Mexico
  • Macquarie in Supply and Offtake Agreement in connection with petrochemical products that involved storage of crude supply as well as storage of resulting petrochemical products
  • Trafigura in its approximately US$200 million joint venture with Infraestructura Energética Nova (IEnova) to develop a refined products terminal and storage facility in Manzanillo, Colima, Mexico
  • Salt Creek Midstream, a midstream partnership between Ares Management and ARMEnergy Holdings in debt and equity financing matters
  • Multiple clients in agreements for the sale and purchase of marine vessels, including overseeing compliance with ship registry requirements
  • Multiple clients in vessel charter agreements, including time charters, bareboat charters, and heavy lift charters
  • A private aviation company in connection with the development of a cargo terminal, including the negotiation and development of contracts for the construction of the terminal and terminal usage agreements with air cargo carriers

Midstream

  • Equitrans Midstream in entering into a 10-year mixed-use water services agreement with EQT Corporation covering operations in southwestern Pennsylvania with a yearly minimum revenue commitment of US$35-$40 million
  • Represented a private equity-backed midstream provider in negotiation of produced water gathering and disposal agreement with an independent exploration and production company
  • Represented a private equity-backed midstream provider in negotiation of produced water transportation services agreement, including a substantial acreage commitment covering acreage in the Permian basin, with an integrated oil major
  • Equitrans Midstream Corporation in transformative actions including its acquisition of EQM Midstream Partners, a share buy back from EQT, and entrance into a gas gathering and compression agreement with EQT (and various affiliates) providing EQM with a minimum volume commitment of 3.0 billion cubic feet of natural gas per day during the term
  • An independent oil and natural gas company in its crude gathering agreement with Taproot Energy Partners involving a substantial dedication in central Weld County, Colorado
  • Development Capital Resources, an Ares Management, (Ares) portfolio company, in its US$750 million investment for common and preferred equity in a joint venture with California Resources Corporation (CRC) to operate midstream infrastructure assets and related purchase by Ares in a private placement of US$50 million of CRC common stock
  • Bonanza Creek Energy (NYSE: BCEI), an independent oil and natural gas company, in its gathering and processing agreement with midstream company Cureton Front Range to provide an independent gas processor connected directly to Bonanza Creek’s Rocky Mountain Infrastructure
  • Alberta Investment Management Company in its commitment to fund, along with a syndicate of financial sponsors, Howard Midstream Energy Partners' strategic partnership with WPX Energy (NYSE: WPX) to develop crude oil and natural gas gathering and processing infrastructure in the Delaware Basin

Upstream Oil and Gas

  • Warburg Pincus/RimRock Oil & Gas Williston in its US$500 million acquisition of non-operated upstream assets in the Bakken Shale from Whiting Petroleum Corporation (NYSE: WLL)
  • GSO/Sequel Energy Group in its formation of a US$325 million drilling partnership to develop domestic unconventional resources in the Utica Shale with Eclipse Resources (NYSE: ECR)

News and client work

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Contact details

Career and qualifications

  • Southern Methodist University (B.A.) 2002
  • The University of Texas School of Law (J.D.) 2006
  • Admitted as an Attorney-at-Law in Texas 2007
  • Joined Clifford Chance as Partner 2023

Awards and citations

Best Lawyers: Ones to Watch 2024 - Energy Law (Best Lawyers ®)