KMP to expand carbon-dioxide infrastructure

Kinder Morgan Energy Partners LP

Kinder Morgan Energy Partners LP (NYSE: KMP) is set to invest $671 million to grow its carbon-dioxide infrastructure in southwestern Colorado and New Mexico. The company plans to expand its carbon-dioxide production operations in the Cow Canyon area of the McElmo Dome source field in Montezuma County, Colorado, and to also expand the 500-mile Cortez Pipeline that transports carbon dioxide 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 $1 billion to develop the St. Johns source field in Apache County, Arizona, and to build a new 214-mile pipeline to transport carbon dioxide from St. Johns to the Cortez Pipeline in Torrance County, New Mexico.

Capital expenditures for the Cow Canyon development are estimated at $344 million, and they will increase carbon-dioxide production in the McElmo Dome source field by 200 million cubic feet per day (MMcf/d). The plan includes ongoing 3D 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 carbon dioxide 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 $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 carbon-dioxide supply from the McElmo Dome field, the recently announced St. Johns source field, and other sources in southwestern Colorado.

Kinder Morgan owns a 50% 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 carbon dioxide expected from the company’s St. Johns carbon-dioxide source field.


Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...