Boston, MA 05/19/2014 (wallstreetpr) – Kinder Morgan Inc (NYSE:KMI) has announced through a recent press release that it would be expanding its carbon dioxide production in the New Mexico and Southwestern Colorado.
Infrastructural expansion in CO2 production
Kinder Morgan Inc (NYSE:KMI) has invested around $671 million in the expansion of its carbon dioxide producing infrastructure in the regions above-mentioned. The company is looking forward to execute the expansion in the Cow Canyon area in Colorado. The expansion would include the construction of a pipeline that would stretch to a distance of over 500 miles an would carry carbon dioxide from the southwestern region of Colorado to New Mexico. This would find its use in an enhanced oil recovery projects, in New Mexico as well as in West Texas.
The President of Carbon Dioxide group at Kinder Morgan, James Wuerth, said that the company is aiming towards designing projects that would be able to meet the increasing demands of carbon dioxide in the market. He revealed that the demands are increasing because of an increase in the number of enhanced oil recovery projects. He also reported that this investment is a part of the company’s previously announced initiative of investing $1 billion in order to develop the St. John’s project, which involves the building of a 214-mile long pipeline for carbon dioxide transportation.
The money that Kinder Morgan Inc (NYSE:KMI) would be investing in the Cow Canyon project has been reported to amount to $344 million, which would increase the carbon dioxide production in the said area.
This project would involve the construction of the well for water disposal, sixteen new wells, one activated production well, other facilities for separation of water, one central station for compression and associated pipelines. Kinder Morgan Inc (NYSE:KMI) reports that the development should come online at the Cow Canyon by July 2015 due to the pending regulatory approvals. The project would then be completed by the end of the year 2015.
