Gulf gas gathering pipeline scheduled

Oct. 28, 1996

Garden Banks System [21384 bytes] Units of Shell Oil Co. and Amerada Hess Corp. have proposed laying a 1 bcfd capacity natural gas gathering system in the Garden Banks area of the Gulf of Mexico off Louisiana. Their venture, Garden Banks Gas Pipeline LLC (GBGP), plans a 50-mile, 30-in. pipeline to gather deepwater and shelf edge gas and redeliver it offshore to existing interstate transmission systems. The Garden Banks Gathering System (GBGS) pipeline will extend from the Enchilada production

Garden Banks System [21384 bytes]

Units of Shell Oil Co. and Amerada Hess Corp. have proposed laying a 1 bcfd capacity natural gas gathering system in the Garden Banks area of the Gulf of Mexico off Louisiana.

Their venture, Garden Banks Gas Pipeline LLC (GBGP), plans a 50-mile, 30-in. pipeline to gather deepwater and shelf edge gas and redeliver it offshore to existing interstate transmission systems.

The Garden Banks Gathering System (GBGS) pipeline will extend from the Enchilada production platform on Garden Banks Block 128 to a new platform on South Marsh Island Block 76.

Outlets are planned to deliver offshore to four downstream pipelines: Bluewater and Transco on South Marsh Island Block 76, ANR on South Marsh Island Block 108, and Sea Robin on South Marsh Island Block 128.

Inlets are planned on the Garden Banks Block 128 A platform and subsea in Garden Banks Block 84.

Initial service is planned for April 1997.

Open season

GBGP will offer an open season for shippers seeking transportation on GBGS.

Open season begins Nov. 1 and ends Nov. 25.

During open season, shippers that commit gas from OCS blocks, whether developed or undrilled, will receive discounted FT-2 transportation rates, if and when they deliver gas, and they will be eligible to qualify for other future discounts.

During 1997-2002, capacities available for subscription during open season are 420-710 MMcfd; thereafter, 1 bcfd is available.

Potential shippers that commit OCS blocks to GBGP during the open season by signing a reserve commitment agreement will preserve a discounted rate for future transportation service agreements for gas produced from committed blocks.

GBGP is owned 80% by Shell Enchilada Gas Pipeline Co., a unit of Shell Gas Pipeline Co., and 20% by Hess Garden Banks Gathering Inc., a unit of Amerada Hess Corp.