Kinder Morgan CO2 is the largest transporter of carbon dioxide in North America. We deliver approximately 1.3 billion cubic feet per day of CO2 through about 1,300 miles of pipelines for use in enhanced oil recovery (EOR) projects to recover crude oil from mature fields. We use a good portion of this CO2 in our own EOR projects and we sell CO2 to third-party customers.
On the production side, we produce approximately 57,000 barrels of oil per day, much of which comes from our large SACROC Unit in the Permian Basin of West Texas. Natural gas liquids production has also grown significantly in this business segment.
In response to the industry’s strong demand for CO2, Kinder Morgan is investing substantial capital to expand production and transportation of CO2. For example, the company will spend about $1 billion to develop the St. Johns CO2 source field in Arizona and build the Lobos Pipeline to transport the CO2 to the Kinder Morgan-operated Cortez Pipeline in New Mexico.