Kinder Morgan Energy Partners LP Expanding CO2 Network Through $1 Billion Investment

Kinder Morgan Energy Partners  (NYSE: KMP  )  today announced plans to build a new CO2 pipeline spanning from Arizona to New Mexico, which will result in an investment of $1 billion in the states.

The 213-mile Lobos Pipeline will begin in the company's St. Johns source field in Apache County, Ariz., and stretch to the Kinder Morgan-operated Cortez Pipeline in Torrance County, N.M. It is estimated to have an initial per-day capacity of 300 million standard cubic feet, and will be used to support both current and future efforts of Kinder Morgan and other companies in their enhanced oil recovery (EOR) projects in the Permian Basin of West Texas and eastern New Mexico.

Following approval from environmental and regulatory agencies, Kinder Morgan Energy Partners expects the project to be in service by the third quarter of 2016.

"This project will help address the market's growing demand for CO2 and enable Permian Basin producers to increase oil production by using the product in EOR projects," James Wuerth, president of Kinder Morgan Energy Partners' CO2 group, said in a press release. "EOR is measurably increasing the nation's recoverable oil supply and will continue to do so in the future."

As a result of the project, Kinder Morgan Energy Partners plans to invest $700 million in the St. Johns field for drilling wells and to build field gathering, treatment, and compression facilities. The remaining $300 million of the estimated investment will be used to build the pipeline itself. The company said this project will employ approximately 1,200 contractors.

link


Read/Post Comments (0) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2891243, ~/Articles/ArticleHandler.aspx, 7/31/2014 2:22:42 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 16,667.69 -212.67 -1.26%
S&P 500 1,942.85 -27.22 -1.38%
NASD 4,394.45 -68.45 -1.53%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

7/31/2014 2:05 PM
KMP $81.14 Down -1.03 -1.25%
Kinder Morgan Ener… CAPS Rating: *****
KMI $36.36 Down -0.94 -2.52%
Kinder Morgan CAPS Rating: *****

Advertisement