OIL, GAS GATHERING SYSTEMS PLANNED IN GULF

July 17, 1995
Units of two large U.S. interstate gas pipeline companies are forming a partnership to build a $60 million gathering system in the Gulf of Mexico. The proposed system will gather crude oil, gas, and condensate from production facilities in the Main Pass and Viosca Knoll federal planning areas (52748 bytes) . Wells in the Main Pass area generally arc in relatively shallow water and close to shore, while Viosca Knoll developments mostly are in deep water of the gulf's Outer Continental Shelf.

Units of two large U.S. interstate gas pipeline companies are forming a partnership to build a $60 million gathering system in the Gulf of Mexico.

The proposed system will gather crude oil, gas, and condensate from production facilities in the Main Pass and Viosca Knoll federal planning areas (52748 bytes).

Wells in the Main Pass area generally arc in relatively shallow water and close to shore, while Viosca Knoll developments mostly are in deep water of the gulf's Outer Continental Shelf.

Project sponsors are Centana Energy Corp., a unit of Panhandle Eastern Corp., Houston; and CNG Energy Services Corp., a unit of Consolidated Natural Gas Co., Pittsburgh.

The proposed gathering system's gas and condensate handling facilities and pipeline segments are to be ready to begin service in first quarter 1996, with oil gathering facilities to go on line in fourth quarter 1996.

Design of the gathering system will enable it to transport 25,000 b/d of oil, 300 MMcfd of gas, and 5,000 b/d of condensate.

Russell Gifford, president of CNG Energy Services, said Main Pass and Viosca Knoll productive capacity has surpassed the capacity of gathering lines in the areas.

Adding gathering capacity will allow operators to continue developing reserves in an important producing area, he said.

In addition, said Centana Pres. Jim Mogg, the project underscores Centana's commitment to gathering hydrocarbons produced in the Gulf of Mexico.

MAIN SYSTEM COMPONENTS

Centana and CNG plan to lay 30 miles of 20 in. gas pipeline to an existing Texas Eastern Transmission Corp. line on Main Pass Block 165 from a structure on Main Pass South & East Addition Block 225. Plans include laying a 17 mile gas spur from Main Pass 225 to Viosca Knoll Block 826. Diameter of the latter line was not disclosed.

The project is to include separation, dehydration, condensate handling, and gas compression facilities on Main Pass 225. Partners are to lay a 6 mile condensate line to connect processing facilities on Main Pass 225 with Shell Oil Co.'s Cobia pipeline from Shell Offshore Inc.'s Bud platform in the Main Pass area.

The gathering system's oil component is to consist of a 28 mile line connecting Viosca Knoll Block 826 with Shell's Cobia line on Main Pass South & East Addition Block 289.

Partners said capacities of the oil line and 17 mile gas spur will be at least 25,000 b/d and 30 MMcfd, respectively. That is the projected output of the spar based production system planned to develop Neptune field on Block 826. The lines could be larger if other producers in the area agree to tie into the Centana-CNG gathering system.

Neptune partners Oryx Energy Co., Dallas, and CNG Producing Co., New Orleans, expect to install the spar in 2,000 It of water on Viosca Knoll 826 in time to start production from the tract early in 1997 (OGJ, Nov. 21, 1994, p. 33).

Gifford said the project combines Centana's experience designing and operating offshore gathering pipelines with CNG Energy Services's reserves and operating expertise.

"Technology and experience will be particularly important as oil and gas gathering systems are extended to production areas in deeper water," he said.

Centana will operate the gathering system's gas and condensate pipelines and CNG Energy Services the oil line.

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