July 2014, Vol. 69 No. 7

Newsline

Kinder Morgan Set To Expand CO2 Footprint

Kinder Morgan Energy Partners 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, CO, 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 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, AZ, and build a new, 214-mile pipeline to transport CO2 from St. Johns to the Cortez Pipeline in Torrance County, NM.

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). 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; and modifying five existing pump stations. 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.

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