KMEP to expand carbon dioxide systems in Colorado, New Mexico

Kinder Morgan Energy Partners LP (KMEP) reported it will invest $671 million to expand its carbon dioxide 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, Colo., and expand the 500-mile Cortez Pipeline that transports CO2 from southwestern Colorado to eastern New Mexico and West Texas for use in enhanced oil recovery projects (OGJ, May 5, 2014, p. 92).

“These projects are designed to help address the market’s growing demand for CO2 and enable companies, including Kinder Morgan, to increase incremental oil production by using CO2 in EOR projects,” said James Wuerth, president of KMEP’s CO2 group.

KMEP said investments are in addition to its recently announced initiative to invest $1 billion to develop the St. Johns source field in Apache County, Ariz., and build a 214-mile pipeline to transport CO2 from St. Johns to the Cortez Pipeline in Torrance County, NM (OGJ Online, Mar. 26, 2014).

Capital expenditures for the Cow Canyon development are estimated at $344 million and will increase CO2 production in the McElmo Dome source field by 200 MMcfd. 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 MMcfd of CO2 from the Cow Canyon development will come online by July 2015, with the remaining 100 MMcfd expected to be in service by yearend 2015.

Capital expenditures for the Cortez Pipeline expansion are estimated at $327 million and will increase the pipeline’s capacity from 1.35 billion bcfd to 2 bcfd by adding a 64-mile loop in New Mexico and three 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 CO2 supply from the McElmo Dome field, the recently announced St. Johns source field, and other sources in southwestern Colorado.

KMEP owns 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 MMcfd of CO2 expected from the company’s St. Johns CO2 source field.

Related Articles

West Cornwall Township hears from Sunoco Logistics

12/12/2014

Sunoco Logistics Partners outlined its safety systems during a West Cornwall Township meeting in Pennsylvania on Nov. 10.

ETP eyes larger capacity for planned Bakken pipe

12/12/2014 Energy Transfer Partners LP has launched a binding expansion open season to boost capacity on a planned pipeline system that would move oil from th...

Kinder Morgan to deliver natural gas to Corpus Christi Liquefaction

12/11/2014 Kinder Morgan Inc. (KMI) companies Kinder Morgan Texas Pipeline, Kinder Morgan Tejas Pipeline, and Tennessee Gas Pipeline Co. (TGP) have entered in...

Rosneft, Essar sign terms of oil supply agreement

12/11/2014 OAO Rosneft and Essar Energy PLC have signed key terms of an oil supply agreement in New Delhi. Rosneft said shipments to India may begin in 2015.

Barton introduces bill to remove US crude export limits

12/11/2014

US Rep. Joe Barton (R-Tex.) introduced legislation that would remove US crude oil export limits that have been in place for nearly 40 years.

BG agrees to sale of Australian gas pipeline to APA Group

12/10/2014

BG Group PLC agreed to sell its wholly owned subsidiary Queensland Curtis LNG Pipeline Pty. Ltd. (QCLNG) to APA Group for about $5 billion.

More West Texas gathering, processing to come onstream

12/09/2014 EagleClaw Midstream Services LLC, Midland, Tex., has bought natural gas gathering and processing in Reeves County, Tex. The company declined to ide...

Methane controls just part of complete climate strategy, speakers say

12/08/2014 Reducing oil and gas operations’ methane emissions is an essential, but far from the only, part of a comprehensive climate strategy, speakers at a ...

Rail tank car rule could cost economy billions, report says

12/08/2014 The US Pipeline and Hazardous Materials Safety Administration's (PHMSA) proposed rail tank car rule could cost the US economy as much as $60 billio...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected