Kinder Morgan – an energy infrastructure company operating around 83,000 miles of pipelines, announced new carbon capture initiatives during its latest earnings report.
The company signed a deal with the Red Cedar Gathering Company to provide carbon dioxide services on its existing Cortez Pipeline. Red Cedar Gathering Company is a natural gas gathering and treating company that is a 51/49 joint venture between the Southern Ute Indian Tribe Growth Fund and Kinder Morgan.
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The carbon capture project discussed at the fourth-quarter earnings call of Kinder Morgan would transport around 20 million cubic feet of carbon dioxide per day to the Permian Basin for use in enhanced oil recovery. The project was refered to by company management as “small”, with the amount of CO2 transported just a fraction of the over 900 million cubic feet per day of natural gas currently flowing through Cortez.
The partnership will also enable Red Cedar to move forward with a carbon capture project at two natural gas treating plants in Southern Colorado. The total CO2 captured from the two facilities is expected to come at up to 400,000 metric tons annually.
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“This is a good opportunity for us. CCUS is going to have to be part of the solution over the long term. And we have the capability to transport it and put it in the ground and keep it in the ground. And so, there’s a good longer-term opportunity there…. It’s the first, we hope, of many, but there are a number of things that have to be worked out,” said Steve Kean, CEO of Kinder Morgan.
