Kinder Morgan to spend $1B on CO2 project

|About: Kinder Morgan Energy Partne... (KMP)|By:, SA News Editor

Kinder Morgan Partners (KMP +0.3%) says it plans to invest $1B to expand its carbon dioxide network with a new 213-mile pipeline.

The Lobos Pipeline will transport CO2 from the company’s St. Johns source field in Apache County, Ariz., to its Cortez Pipeline in Torrance County, N.M., and will have an initial capacity of 300M cf/day.

KMP says it will spend ~$300N on the pipeline and ~$700M to drill wells and build field gathering, treatment and compression facilities at the St. Johns field.

The project also will support enhanced oil recovery projects owned by Kinder Morgan and other operators in the Permian Basin of West Texas and eastern New Mexico.