Wednesday, April 02, 2014
Kinder Morgan to invest $1 billion in St. Johns CO2-helium field and pipeline
Kinder Morgan is expected to spend about $300 million on a 213-mile pipeline to move carbon dioxide from the St. Johns field in eastern Arizona to oil fields in eastern New Mexico and West Texas to use for enhanced oil recovery, and "about $700 million to drill wells and build field gathering, treatment and compression facilities at the St. Johns field," according to a story in Phoenix Business Journal.
The report further says "The 16-inch diameter Lobos Pipeline will transport carbon dioxide from the company’s St. Johns source field in Apache County, Ariz., to its Cortez Pipeline in Torrance County, N.M., and will have an initial capacity of 300 million standard cubic feet per day." [Right, proposed Lobos pipeline route. Credit, Kinder Morgan]. Earlier reports indicated that initially the pipeline would carry only 200 million cubic feet per day. All of this is contingent on the company getting the required permits.
The St. Johns field is also expected to produce commercial quantities of helium, a gas in growing demand for industrial purposes.
at 2:52 AM