GILLETTE, Wyo.—A contract to build a 230-mile carbon dioxide pipeline to boost the production of aging Powder River Basin oil fields has been awarded to the Denver-based engineering firm CH2M Hill.
Construction on the $240 million project is expected to start in summer 2011 and the pipeline is expected to be in operation by the end of that year.
Encore Acquisition Co. recently struck a deal to take 50 million cubic feet of CO2 per day from the Lost Cabin gas plant in central Wyoming. It will compress the gas into liquid form and ship it through the planned pipeline to Encore’s Bell Creek oil field in southeastern Montana.
CH2M Hill’s contract includes pipeline routing, surveying, engineering, design and other services for the project.
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Information from: The Gillette News Record – Gillette,
