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Kinder Morgan to spend $1B on CO2 project

  • 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.
Comments (6)
  • boudiccia
    , contributor
    Comments (15) | Send Message
     
    It also contains recoverable helium
    26 Mar, 10:15 AM Reply Like
  • Kee Delany
    , contributor
    Comments (21) | Send Message
     
    kmi, kmp co2
    26 Mar, 10:40 AM Reply Like
  • toomuchgas
    , contributor
    Comments (565) | Send Message
     
    Guess the CO2 business isn't drying up as some have suggested.
    26 Mar, 12:11 PM Reply Like
  • shillingfarmer
    , contributor
    Comments (8) | Send Message
     
    Is not a good idea.
    27 Mar, 02:10 AM Reply Like
  • Energysystems
    , contributor
    Comments (1076) | Send Message
     
    Kinder doesn't commit to building a pipeline until it has the contracts in place. It's a money making idea.
    27 Mar, 04:39 PM Reply Like
  • bjohnson760
    , contributor
    Comments (5) | Send Message
     
    some will probably bitch about this not being classified as maintenance capital
    27 Mar, 02:23 AM Reply Like
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