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.  

3 comments:

  1. If my family owns large amounts of land in St. Johns should we contact "Kinder Morgan" about sale or use of our land

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  2. The extent of the field seems to be pretty well defined at this time and we have not seen the company exploring new lands outside the known field boundaries. I expect Kinder Morgan has leased or purchased the lands overlying the producing area of the field but it's possible there are gaps in their land block or they will need additional lands for surface facilities or subsurface pass-through rights.

    If there is interest in your lands, you should consider consulting an attorney with experience in leasing mineral rights, so you understand what you could be getting into.

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