26 March 2014 15:00 [Source: ICIS news]
HOUSTON (ICIS)--Kinder Morgan Energy Partners plans to invest $1bn to meet growing carbon dioxide (CO2) demand for use in enhanced oil recovery (EOR) projects in Texas and New Mexico, the US-based midstream energy firm said on Wednesday.
Kinder will invest $300m to build a 213-mile (342-km) pipeline to ship CO2 from its St Johns source field in Arizona to its Cortex pipeline in Torrance county, New Mexico, and it will invest $700m to drill additional wells and build field gathering, treatment and compression facilities at the St Johns field, it said.
The project will help oil producers in the Permian basin in western Texas and New Mexico to increase their oil production through EOR project, Kinder said.
James Wuerth, president of Kinder’s CO2 business, added: "EOR is measurably increasing the nation’s recoverable oil supply and will continue to do so in the future."
Kinder's project is expected to be in service by the third quarter of 2016.
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