CO2 Pipelines

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CO2 PipelinesNew Technologies & Economics forCarbon Capture / SequestrationMarch 29, 2019James Glass, Director – Engineering Services and BDKinder Morgan CO2 Company

CO2 Pipelines in the USSafest and cheapest transport method for major volumesRoughly 5,000 miles total in the US, starting in 19722

CO2 Pipelines vs. Natural Gas Pipelines Use same steel metallurgy as Natural Gas Pipelines Keep CO2 dry Higher operating pressures Gas – 600 psig to 1200 psig CO2 – 2000 to 3000 psig Why? Maintain CO2 in dense phase ( 1300 psig) to allow pumping ratherthan compression. Also allows for smaller pipe diameters. Pumps rather than compression Energy savings CO2 - PHMSA regulated under CFR Part 195, “Transportation ofHazardous Liquids by Pipeline” Natural Gas – PHMSA regulated under CFR Part 192, “Transportationof Natural and Other Gas by Pipeline” Both CO2 and Natural Gas Pipelines are required to have manned, 24hour monitoring and control facilities3

Current Kinder Morgan CO2 Pipeline SpecificationsWhy are these specifications important?Quality specifications for CO2 pipelines.a)Product. Contain at least 95 mole percentage of CO2.b)Water. Contain no free water, and not more thanthirty (30) pounds of water per mmcf in the vaporphase.c)d)Hydrogen Sulfide. Contain no more than 20 ppm, byvolume, of H2S.Total Sulfur. Contain no more than 35 ppm, byweight,e)Temperature. Shall not exceed 120oF.f)Nitrogen. Contain no more than 4 mole percent.g)Hydrocarbons. Contain no more than 5% molepercent and Dew point no more than -20oF.h)Oxygen. Contain no more than 10 ppm, by weight, ofoxygen.i)Other. Contain no liquid glycol or no more than 0.3gallons of glycol per MMcf.a) Product. Maintain dense phaseb)Water. Free water causes corrosion and damagespump seals.c) Hydrogen Sulfide. Corrosion concern and dangerousto health and safety of the public. Special requirementsif 99 ppm in Texas.d)Total Sulfur. Foul odor in producte)Temperature. Protect pipeline external coatingf)Nitrogen. Maintain dense phase of productg)Hydrocarbons. Maintain dense phase of product andEOR performance characteristicsh)Oxygen. Catalyst for other internal corrosioncomponents. H2S and O2 form elemental sulfur inEOR pipingi)Other. Glycol damages pump seals.4

CO2 Pipelines-OperationsOperations: ANSI 900/1,500 Pipeline System Minimum CO2 Pressure: 1,300 psig Maximum Operating Pressure (MOP)varies per hydraulics/terrain Typical: 2,160 psig / 2,220 psi As high as 3,000 psig Measurement – Orifice Measurement Cathodic Protection Typical: Impressed Current System Remote Controlled by SCADA Pipeline Integrity Program “Piggable”-Pigging program per CFR 195and Kinder Morgan O&M Anomaly Digs Per CFR 195 & O&M One Call Program 811 Call Before You Dig Program5

Marcellus/Utica CO2 Infrastructure None exists today Challenges to economical development are many Conversion of an existing pipeline is unlikely Low pressure rating Compression costs higher than pumping costs If ROW is more recent, likely to have service restrictions Use of existing ROW could be difficult More recent ROW agreements are often limited to one pipeline Potential service restrictions Costs are higher than in other basins ROW Construction (terrain) Prefer a gathering system collecting major volumes Reduces per unit transportation costs Diversity of supply increases supply reliability6

QUESTIONS?7

Kinder Morgan CO2 Pipeline SystemLongest CO2 pipeline system out of the roughly 5,000 miles total in the USPipeline DetailsCO2 Pipeline SystemNameLength(miles)DiameterYearBuiltCRC PL13816”1972Cortez PL50230”1984CentralBasin PL14326”, 24”, 20”,& 16”1985Pecos PL258”1985CenterlinePL11216”2002Cogdell PL410”2003EasternShelf PL9110”2010Tall CottonPL612”2014Total1,3044” to 30”9

CO2 Pipelines - Regulations Regulated by Department of Transportation, Pipeline Hazardous Materials Safety AdministrationCO2 Pipelines are regulated under 49 CFR 195 - Transportation of Hazardous Liquids byPipelineGoverns materials, design, construction, operations, and maintenanceState Agencies may have additional regulationsRegulations are specific/prescriptive or performance basedOperations and Maintenance Manual Operator interpretation and implementation of codeProvides uniform standardAuditable proceduresMust follow plans and procedures as outlined in O&M ManualOperators must comply with minimum standards from code or state Records prove compliance – types of records Life of facility (includes construction, materials, repairs, testing, and MOP information) Transient (includes tests, inspections, patrols, and surveys) No records did not do the work Pipeline Safety Management System – API RP 117310

CO2 Pipelines – OperationsSCADA: Operational ControlCortez, Colorado Control CenterSystem Control 24 hour monitoring and control ofPipeline Facilities Monitor pressures and flow at key pointson the system Receive key alarms from field locationsand callout employees in response Provides full remote control to: Start/stop Pump Stations Flow control of meter facilities tocustomers Shut-down and closure of valvesduring normal operations and in anemergency11

CO2 Pipelines - DesignEngineering/Design/ Engineering/DesignHydraulicsCO2 QualityH2SOutside DiameterWall Thickness Lot Purchases from Vendor Review MTR’s in detail beforepurchase High Grade/High Strength Approved Vendors/millsBarlow’s FormulaStandard/Heavy Wall Ductile Fracture Analysis Theoretical Charpy NumbersCrack Arrestors Operating Company risk toleranceDesign pipeline system in order to notadd fracture arrestorsWall thickness changes (crossings) to actlike fracture arrestors12

Pipe Manufacturing Process and Grade:CO2 rence API Specification 5L; “Specification forLine Pipe” (45th Ed). PSL 2 ProductSpecification LevelPipe Manufacturing Process and Grade: Pipe Manufacturing Process and Grade: High Frequency Electric Welded(HFW) Electric Resistance Welding (ERW) Double Submerged Arc Welding(DSAW) / Longitudinally submergedarc-welded pipes (LSAW) NO HSAW Preferred Grade: X65 or X70 Fusion Bonded Epoxy (FBE): Standard Pipe FBE Abrasive Resistant Overlay (ARO) Crossings (heavy Wall)HDD/RRC/Highways/Roads/Water Powder Manufactures: ValsparDupont3M13(a)Reference

Pipeline Construction Sequence14

Pipeline Governs materials, design, construction, operations, and maintenance State Agencies may have additional regulations Regulations are specific/prescriptive or performance based Operations and Maintenance Manual Operator interpretation and implementation of code Provides uniform standard Auditable procedures

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