A majority of these volumes have been contracted by third-parties, and will support new and existing CO2 flood projects operated by the purchasers in the Permian Basin of West Texas and have a volume weighted average term of nearly 16 years.
One of the contracts include transporting CO2 through Kinder Morgan’s 91-mile Eastern Shelf pipeline to a project near the company’s Katz field, to commence in 2014.
Kinder Morgan is also working on a $255m expansion at its Doe Canyon Unit CO2 source field in southwestern Colorado to increase capacity from 105 MMcfd to 170 MMcfd. T
The company also plans to drill 19 more wells during the next 10 years, which will increase production from 105 MMcfd to 170 MMcfd.
The company has recently closed acquisition of the St. Johns CO2 source field and related assets located in Apache County, Arizona, and Catron Country, New Mexico with well testing and predevelopment activities currently underway.
