Williams, DCP to build Keathley Canyon Connector gas line

Williams Partners LP and DCP Midstream Partners LP plan to expand their Discovery natural gas gathering pipeline system in the deepwater Gulf of Mexico by building the Keathley Canyon Connector, a 215-mile, 20-in. OD subsea gas gathering pipeline for production from the Keathley Canyon, Walker Ridge, and Green Canyon areas. Discovery has signed long-term agreements with owners of the Lucius (Anadarko, 35%; Plains Exploration & Production PEP, 23.33%; Apache, 11.7%; ExxonMobil, 15%; Petrobras, 9.6%; and Eni, 5.4%) and Hadrian South (ExxonMobil, 50%; Petrobras, 25%; Eni, 25%) fields for transport of their production.

The 400-MMcfd Keathley Canyon Connector will start in the southeast portion of Keathley Canyon and run to an interconnection with Discovery’s 30-in. OD mainline near South Timbalier Block 283 for shipment to Williams’ 600-MMcfd Larose gas processing plant and 32,000-b/d Paradis fractionator, both in Louisiana.

Construction will begin in 2013 to meet a mid-2014 in-service date. Saipem’s Castorone will perform pipelay for the project (OGJ Online, Jan. 19, 2012). Williams estimates total capital expenditures for the Keathley Canyon Connector at $600 million.

Williams Partners owns 60% of the Discovery system and operates it. DCP Midstream Partners LP owns the other 40%.

Contact Christopher E. Smith at chriss@ogjonline.com.

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