Pipeline near Donaldsonville updated

Staff reports

BATON ROUGE – Denbury Resources Inc. updated officials Thursday on its Green Pipeline project currently being built in Louisiana and Texas.

The 320-mile pipeline, which will run from the end of the company’s NEJD Pipeline near Donaldsonville, westward to its Hastings Field, south of Houston, is designed to transport both natural and man-made carbon dioxide.

Denbury said it plans to use CO2 to recover oil from mature, depleted oil reservoirs that would not otherwise be economically produced.

“We started construction of our Green Pipeline in the first quarter and expect to have it completed to Galveston Bay by mid 2010 and to Hastings by late 2010,” said Gareth Roberts, Denbury’s chief executive officer. “The pipeline will positively impact Louisiana by providing economic and environmental benefits to the state, its businesses and its residents.”

The project will have a total capital investment of $750 million and is expected to create up to 800 jobs in the private sector during construction, according to the firm. Denbury has employed several Louisiana companies to assist with the project, including Stupp Corporation in Baton Rouge, C.H. Fenstemaker in Lafayette and Wilco Pipeline in Raymond, Louisiana. 

“Our CO2 enhanced oil recovery operations not only increase domestic oil production, but also improve the local economies in which we operate, provide a promising method to sequester industrial CO2 volumes, and help reduce our nation’s need for imported oil,” said Roberts.

According to a recent U.S. Department of Energy study conducted by Advanced Resources International, there are between 45 and 85 billion barrels of oil in existing U.S. oilfields that can be recovered through CO2-EOR, with the Gulf Coast area containing between 2.6 and 5.9 billion barrels of potential oil that can be recovered utilizing CO2-EOR. In addition, the infrastructure used for CO2-EOR can be used for large-scale carbon capture and sequestration projects in underlying saline formations.