Oct 28 (Reuters) - Enterprise Products Partners ( EPD )

agreed to develop a CO2 transportation network to support carbon

capture firm 1PointFive's hub in southeast Texas to carry

emissions captured by third parties for sequestration, the

companies said on Monday.

The network, part of Occidental's 1PointFive

initiative, will transport emissions from facilities near the

Houston Ship Channel to Bluebonnet Sequestration Hub.

Earlier this month, the Bluebonnet and Magnolia

Sequestration Hubs were awarded $36 million in funding from the

U.S. Department of Energy.

Earlier this year, 1PointFive entered into agreements with

tech giant Microsoft ( MSFT ) and telecom company AT&T ( T ) to

sell carbon dioxide removal (CDR) credits.

Carbon credits are tradable permits that allow the owner to

emit certain amounts of greenhouse gases. Each credit permits

the emission of one metric ton of carbon dioxide or the

equivalent of other greenhouse gases.