KMEP to build Permian carbon dioxide pipeline

Kinder Morgan Energy Partners LP will build and operate a 213-mile, 16-in. OD pipeline to transport carbon dioxide from its St. Johns source field in Apache County, Ariz., to the KMEP-operated Cortez Pipeline in Torrance County, NM. The Lobos Pipeline will have an initial capacity of 300 MMcfd, supporting current and future enhanced oil recovery projects owned by KMEP and other operators in the Permian basin of West Texas and eastern New Mexico.

In addition the pipeline, KMEP plans to drill wells and build field gathering, treatment, and compression facilities at the St. Johns field. The company is targeting a third-quarter 2016 in-service date, pending regulatory approvals.

The $300 million Lobos Pipeline will follow existing utility rights-of-way wherever possible. KMEP will spend an additional $700 million preparing St. Johns.

KMEP bought the St. Johns dome CO2 and helium holdings from Enhanced Oil Resources Inc. in 2011 (OGJ Online, Nov. 17, 2011).

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