Kinder Morgan Energy Partners, L.P. plans to invest approximately $120 million to further expand its CO2 business operations. The expansion activities will take place in southwest Colorado and will include developing a new CO2 source field and adding infrastructure at the McElmo Dome Unit and the Cortez Pipeline. The expansion includes:


• Development of a new CO2 source field, the Doe Canyon Deep Unit, in Dolores County, Colo. This field will consist of six CO2 production wells, one salt water disposal well and a compressor, which will compress 100 million scf/d of CO2.


• Adding eight CO2 production wells and two compressors at the McElmo Dome Unit in Montezuma County, Colo. This will increase production of CO2 by an additional 200 million cf/d to 1,280 million cf/d.


• Adding two new 8,000 horsepower pump stations and modifying two existing pump stations on the Cortez Pipeline, a 30-in. pipeline that transports CO2 from southwest Colorado to Denver City, Texas. This project will increase transportation capacity on the pipeline to 1.35 billion cf/d from 1.15 billion cf/d.


• Constructing a new 10 mile, 12 inch diameter pipeline that will connect the existing Cortez pipeline to the new Doe Canyon Deep Unit.


Construction on the new Doe Canyon Deep Unit began August 2006 with an expected in service date of January 2008. Construction on the new facilities at McElmo Dome began in November 2006 and is expected to be completed in June 2008. Construction is scheduled to begin at the two new pump stations on Cortez Pipeline in March 2007 with expected in-service dates of January 2008. Modifications to the two existing pump stations will begin in February 2008 with expected in-service dates of June 2008.

Comments