Chaparral to buy Coffeyville CO2

Oklahoma City-Chaparral Energy’s CO₂ subsidiary said March 29 that it has executed a long-term carbon dioxide (CO₂) purchase and sale agreement with a subsidiary of CVR Energy for capture of CO2 from CVR’s Coffeyville, Kans., nitrogen fertilizer plant. The agreement provides for the purchase of CO₂ for Chaparral’s initiation of enhanced oil recovery operations in its North Burbank Unit in northeastern Oklahoma. CVR’s nitrogen plant currently produces 850,000 st/y (40 MMscf/d) of CO₂. In this new project, almost all of the fertilizer plant’s CO₂ will be captured by Chaparral, who will construct a CO₂ compression facility at the plant site and install approximately 70 miles of pipeline to deliver the CO₂ to its North Burbank Unit in Osage County. Injection is expected to commence no later than July, 2013.