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Denbury Resources Inc. Message Board

  • rrb1981 rrb1981 Aug 9, 2003 10:44 AM Flag

    CO2 pipeline

    Anyone know how far south the pipeline runs? The map shows it running well into Louisiana. Is this segement of the line used?

    The reason I ask is that they mention that the line could be extended into East Mississipi or S. Louisiana but it already looks like it runs into S. Louisiana....

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    • rrb1981,

      I believe that LA portion of the pipeline is what get's you to the industrial sales point (Praxair, Pepsi) for the excess CO2 (near Baton Rouge?).

      Look at slide 14 of the DNR presentation sometime. It shows the DNR CO2 pipeline in relation to what are probably GEL or partly GEL oil pipelines and some NG ones. I don't know anything about conversion issues, sizing or the like, but, superficially, the intersections of those pipelines are suggestive of a future opportunity. Minimally they are at least from a right of way point of view.

      Maybe someone familiar with pipelines could comment on conversion issues and the like. I recall a smart poster here some time back opining that pipelines can cost $1mm/mile but I don't know if that is an applicable rule of thumb here.

      Regards,

      Peter

      • 1 Reply to pddane_01929
      • Thanks, I was wondering where the industrial sale portion went.

        I have seen the 1 million dollar a mile number thrown around alot, its pretty accurate for most cases, however, gathering systems as a general rule are not that expensive...

        I guess really its all very specific to which state, geographic terain, population, whats being shipped, size, regulatory agencies....

 
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