By OGJ editors
HOUSTON, June 19 -- Williams Field Services, a midstream unit of Williams Cos. Inc., Tulsa, has agreed to become the operator of Discovery Producer Services LLC and Discovery Gas Transmission LLC—a gas gathering and processing system in Southeast Louisiana and the Gulf of Mexico. Williams already holds 50% interest in the Discovery assets.
The Discovery infrastructure comprises a 105 mile, 30-in. mainline that reaches the edge of the Outer Continental Shelf at Ewing Bank Block 873, delivering natural gas to onshore delivery points. The assets also entail 112 miles of gathering laterals, (including one that reaches Green Canyon Block 254 in 3,200 ft of water), a 600 MMcfd cryogenic gas processing plant near Larose, La., a 42,000 b/d natural gas liquids fractionator near Paradis, La., and a fixed-leg platform at Grand Isle 115.
Previously, these assets were operated by a unit of Texaco Inc., which is divesting its 33.3% ownership stake to Duke Energy Field Services, a unit of Duke Energy Corp., Charlotte, NC, to satisfy a condition from the Federal Trade Commission for closing the merger between Texaco and Chevron Corp.
Discovery is one part of Williams's Gulf of Mexico area gathering and processing portfolio. The company recently completed construction of a new 300 MMcfd gas processing plant in Markham, Tex., and new oil and gas pipelines that serve the Nansen and Boomvang deepwater fields in the western gulf.
Williams also has a 600 MMcfd gas plant at Coden, Ala., a 500 MMcfd gas plant in Cameron Parish, La., and is completing a 500 MMcfd production-handling facility known as Canyon Station on East Main Pass Block 261 south of Mobile Bay, Ala.