Membrane expansion

NATCO Group Inc. has agreed with Kinder Morgan CO2 Company LP to more than double the capacity of its CO2 membrane separation facility in the SACROC field. Kinder Morgan owns a majority stake in SACROC, one of the oldest and largest oil fields in the US using CO2 injection technology, and recently began a significant expansion of its CO2 flood to increase oil production. NATCO owns and operates a 180 mmcf per day separation facility in the SACROC field, using proprietary membrane technology to recover hydrocarbons for Kinder Morgan from produced gas and return high concentration CO2 for re-circulation into the flood. The company is paid a processing fee under a long-term contract with Kinder Morgan. The processing capability of NATCO’s facility, which was most recently expanded in 2001, will increase to a total of 367 mmcf per day upon start-up of the expansion, currently planned for the fall of 2003.

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