Kinder Morgan Plans Carbon Dioxide Pipeline

Lobos Project will support Permian Basin injection


Published:

Kinder Morgan Energy Partners L.P. will build a 213 mile (343 km), 16 in.(400 mm) pipeline to move carbon dioxide (CO2) from the its St. Johns field in Apache County, Arizona, to its Cortez Pipeline in Torrance County, New Mexico.

The new Lobos pipeline will have an initial capacity of 300 MMcfd (8500 m3/d) and will support current and future enhanced oil recovery (EOR) projects owned by Kinder Morgan and other operators in the Permian Basin of West Texas and eastern New Mexico. The company did not disclose the specific compression program for the line.

Kinder Morgan will spend US$300 million on the pipeline and US$700 million to drill wells and build field gathering, treatment and compression facilities at the St. Johns field. The project is expected to be in service by the third quarter of 2016.

“This project will help address the market’s growing demand for CO2 and enable Permian Basin producers to increase oil production by using the product in EOR projects,” said James Wuerth, president of Kinder Morgan’s CO2 group. “EOR is measurably increasing the nation’s recoverable oil supply and will continue to do so in the future.”

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