Calgary-Agrium Inc. and Enhance Energy Inc. announced May 27 that they have signed an agreement for Agrium to supply CO2 to Enhance’s enhanced oil recovery (EOR) projects. The supply of CO2 will be used in several EOR projects under development by Enhance Energy, including the previously announced joint venture with Fairborne Energy Ltd. for the Clive, Alberta, project. “We are proud to partner with Agrium for our CO2 supply, which enables us to produce more oil while at the same time safely sequestering CO2 that would otherwise have been emitted to the atmosphere,” said Susan Cole, Enhance Energy president. “By implementing the first major EOR projects in Alberta, we believe Enhance will lead the way for other projects that will become more viable because of our CO2 pipeline system.” Once Enhance’s pipeline project comes on stream, expected in 2011, Agrium will begin to supply CO2 to the project, thereby significantly reducing Agrium’s CO2 emissions. Agrium has been supplying CO2 for enhanced oil recovery for many years from their Borger, Texas, nitrogen facility. “We recognize the potential of this project and look forward to working with Enhance to make a significant reduction in Alberta’s greenhouse gas emissions,” said Ron Wilkinson, Agrium senior vice president and president of Agrium Wholesale.
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