Kinder Morgan Set to Grow CO2 Footprint in Colorado, New Mexico
Kinder Morgan Energy Partners, L.P. Tuesday announced it will invest approximately $671 million to grow its carbon dioxide (CO2) infrastructure in southwestern Colorado and New Mexico. The company plans to expand its CO2 production operations in the Cow Canyon area of the McElmo Dome source field in Montezuma County, Colo., and expand the approximately 500-mile Cortez Pipeline that transports CO2 from southwestern Colorado to eastern New Mexico and West Texas for use in enhanced oil recovery (EOR) projects.
“These projects are designed to help address the market’s growing demand for CO2 and enable companies, including Kinder Morgan, to increase incremental oil production by using CO2 in EOR projects,” said James Wuerth, president of KMP’s CO2 group. “Kinder Morgan is a leading CO2 supplier and transporter, and we look forward to growing our CO2 network.”
These investments are in addition to KMP’s recently announced initiative to invest approximately $1 billion to develop the St. Johns source field in Apache County, Ariz., and build a new, 214-mile pipeline to transport CO2 from St. Johns to the Cortez Pipeline in Torrance County, N.M.
Capital expenditures for the Cow Canyon development are estimated at approximately $344 million and will increase CO2 production in the McElmo Dome source field by 200 million cubic feet per day (MMcf/d). The plan includes on-going 3-D seismic acquisition, 16 new wells, activation of one production well and one produced water disposal well, water separation facilities, one central compressor station, and associated gathering and produced water disposal pipelines. Pending regulatory approvals, the company anticipates that 100 MMcf/d of CO2 from the Cow Canyon development will come online by July 2015, with the remaining 100 MMcf/d expected to be in service by the end of 2015.
Capital expenditures for the Cortez Pipeline expansion are estimated at approximately $327 million and will increase the pipeline’s capacity from 1.35 billion cubic feet per day (Bcf/d) to 2 Bcf/d by adding a 64-mile loop in New Mexico and three new pump stations, one in Colorado and two in New Mexico; and modifying five existing pump stations, one in Colorado, three in New Mexico, and one in Texas. This expansion will accommodate the increased CO2 supply from the McElmo Dome field, the recently announced St. Johns source field, and other sources in southwestern Colorado. Kinder Morgan owns a 50 percent interest in and operates the Cortez Pipeline. Pending regulatory approvals, the northern portion of the Cortez Pipeline expansion is expected to be completed by July 2015 to handle the additional volumes from Cow Canyon, while the southern portion is expected to be complete by mid 2016 to handle the additional 300 MMcf/d of CO2 expected from the company’s St. Johns CO2 source field.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Top Canadian Court Quashes City's Challenge Of Trans Mountain Pipeline (Aug 23)
- Canada's Govt May Need to Pay More to Expand Trans Mountain (Aug 08)
- Canada's Takeover of Trans Mountain Pipeline to Close in Late 2018 -Proxy (Aug 07)