Kinder Morgan Leases 10,800 Acres In Texas For Carbon Storage

Kinder Morgan Leases 10,800 Acres In Texas For Carbon Storage - Carbon Herald

This week, Kinder Morgan announced it has leased 10,800 acres near the Houston Ship Channel for carbon storage. 

With this move, the pipeline giant is seeking to expand its CO2 storage business.

Kinder Morgan Energy Transitions Ventures agreed last week to lease the 10,800 acres from TGS Cedar Port Partners, a rail service operator that oversees a 15,000-acre industrial park near the channel, the company said. 

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The lease gives Kinder Morgan access to underground caverns capable of storing more than 300 million metric tons of CO2.

Securing space along the channel paves the way for Kinder Morgan to offer solutions to nearby industrial facilities as they look for ways to capture and store the CO2 they emit. 

It joins several big oil companies in a race to develop carbon storage projects in East Texas.

“The economics of carbon capture and storage can be difficult due to the long distances often involved between emission sources and storage sites,” Kinder Morgan CEO Kim Dang said on Wednesday.

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Kinder Morgan already moves and stores oil, gas and petroleum-based fuels and chemicals. It also handles carbon dioxide through its enhanced oil recovery (EOR) business, a process by which oil companies inject carbon dioxide underground to extract more oil. 

To that end, Kinder Morgan expects that CO2 will be increasingly in demand in the Permian Basin as the geology matures and oil companies must work harder to remove oil from the ground.

The company on Wednesday reported a net income of $746 million on $3.8 billion in revenue during Q1, up 10% from $679 million on $3.9 billion in revenue during the first quarter of 2023.

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