Natural resources company Highlands is hoping to acquire 46,000 acres of land in Arizona believed to host significant carbon dioxide (CO2) resources in the US.
The UK-based company has made an application to acquire leases in Apache County that are prospective for commercial volumes of CO2. Grant of leases is subject to ratification by the state and Highlands expects this within the next two weeks.
The company said the area sits adjacent to land which was identified as a target for future CO2 production by Kinder Morgan, one of the leading suppliers of CO2 to the Permian Basin.
Plans had been developed to construct a pipeline from Apache County to the existing pipeline network that provides CO2 for the Permian Basin. Pricing for CO2 in the Permian Basin is usually linked to the price of WTI oil and when it declined in 2015, Kinder Morgan announced that it would not pursue the build.
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