Kinder Morgan To Invest In Network Expansion

June 2014, Vol. 69, No. 6

Kinder Morgan Energy Partners recently announced it would build and operate a new, 213-mile, 15-inch diameter pipeline to transport carbon dioxide from the company’s St. Johns source field in Apache County, AZ, to the Kinder Morgan-operated Cortez Pipeline in Torrance County, NM.

The new “Lobos Pipeline” will have an initial capacity of 300 million standard cubic feet per day and will support current and future enhanced oil recovery projects owned by Kinder Morgan and other operators in the Permian Basin of West Texas and Eastern New Mexico.

The company plans to invest approximately $300 million to drill welss and build field gathering, treatement and compression facilities at the St. Johns field.

The project is expected to be in service by the third quarter of 2016 pending receipt of environmental and regulatory approvals. Construction of the Lobos Pipeline will follow exisisting utility rights-of-way wherever possible to minimize environmental impacts. The project will emply nearly 1,200 contractors during construction.