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Denbury Resources Green Pipeline

admin — Fri, 05 Feb 2010 23:48:57 +0000

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DOE Announces Projects to Receive CCS Funding

admin — Sun, 03 Jan 2010 03:56:28 +0000

The DOE announced the names of the projects selected to receive funding for carbon capture and sequestration projects. The funding is from the American Recovery and Reinvestment Act.

ConocoPhillips received approximately $3,000,000 for its project to capture and sequester CO2. The project is part of its petcoke-based 683-megawatt IGCC power plant adjacent to its existing refinery in Sweeny, Texas. Its projected that 85% of the CO2 from the process stream will be captured and sequestered.

Leucadia Energy received funding for two projects: the Lake Charles Cogeneration project received approximately $540,000 and the Mississippi Gasification received approximately $840,000. The Lake Charles Cogenertion project convert petcoke-to-chemicals (methanol) project to be located near Lake Charles, La. The Mississippi Gasification
facility will gasify petcoke and produce substitute natural gas (SNG).

Both Leucadia projects will transport compressed CO2 for enhanced oil recovery in Texas oil fields via the Denbury Green Line pipeline system.

The remaining Recovery Act funding will be awarded to the most promising projects during a competitive phase two selection process.

Denbury Resources To Construct New CO2 Pipeline

admin — Thu, 26 Feb 2009 03:15:00 +0000

Denbury Resources is bullish on tertiary recovery operations from mature oil fields and is building a CO2 pipeline from Louisiana to Texas. Denbury Resources Inc. is going to build a new CO2 pipeline from Donaldsonville, LA to Hastings Field named the Green Pipeline. The Hasting Field is the site of a mature oil field between between Houston, TX and Alvin, TX.

Denbury Resources purchased the Hastings Field from Venoco in September 2008. The field is expected to be a excellent candidate for enhanced oil recovery using CO2. The Green Pipeline will also route to the Oyster Creek area near Freeport, Texas. Denbury has purchased fields in this area.

The Hastings Field was a very productive field and was a primary contributor to Amoco’s growth. Today, Denbury estimates that the field has from 50 to 80 MMBbl reserve potential from CO2 tertiary flooding. This is greater than any existing field the company currently operates.

Denbury is the largest oil producer in Mississippi. The company has existing CO2 pipelines in Louisiana and Mississippi and has long been bullish on EOR with CO2. The Green Pipeline will transport CO2 from the Faustina gasification plant in Donaldsonville, Louisiana to the Oyster Creek and Hastings Fields for use in enhanced oil recovery.

Denbury has entered into CO2 offtake agreements with three Coal-To-Liquid plants in the Gulf Coast: Faustina and two other gasification projects. Denbury believes that having access to CO2 is strategic to reaching their objectives.