Two eastern Gulf of Mexico gas lines merge

Dauphin Island, Main Pass Systems [47464 bytes]

Two gas gathering pipeline systems in the eastern Gulf of Mexico have merged.

Dauphin Island Gathering Partners, operator of the Dauphin Island Gathering System (DIGS), and Main Pass Gathering Co., operator of the Main Pass Gathering System, have agreed to combine their two offshore systems.

The deal, disclosed this month, is effective Dec. 31, 1996 (OGJ, Jan. 13, 1997, Newsletter).

PanEnergy's Pan Energy Field Services unit was the operating partner in Main Pass Gathering Co. and had a 40% interest in DIGS.

The combined system will be owned by Dauphin Island Gathering Partners. The partnership consists of: PanEnergy Dauphin Island Co. and Centana Gathering Co., both units of PanEnergy Corp., with a combined 37.3% interest; Mcnic Pipeline & Processing Co., a unit of MCN Energy Group Inc., Detroit, 34.6%; Coastal Dauphin Island Co. LLC, a Coastal Corp. unit, 13.6%; CNG Main Pass Gas Gathering Corp., a unit of CNG Energy Services Corp., 13.6%; and Dauphin Island Gathering Co. LP (DIGC), managing partner and a unit of Offshore Energy Development Corp., 1%.

What's involved

The combined systems will have a total capacity to gather 1.155 bcfd of gas ultimately, providing access to the interstate pipeline grid through three onshore interconnects in Alabama, as well as through the Texas Eastern Transmission Corp. (Tetco) existing pipeline system.

Tetco's system links southern Louisiana and the town of Venice's processing complex to offshore production, including Main Pass system Blocks 223 and 225 and Viosca Knoll Block 826.

DIGS traverses Alabama state waters via Block 73 and links federal Mobile Block 822 off Dauphin Island with upper Viosca Knoll areas off Alabama, including Blocks 31 and 80. System consists of 90 miles of varying diameter pipeline, totaling as much as 20-in., with a maximum design capacity of 355 MMcfd of gas.

A system expansion has been approved to construct about 78 miles of 24-in. pipeline to provide an additional 500 MMcfd of gas gathering capacity.

The Main Pass system, in the Main Pass Area East off Louisiana and the lower Viosca Knoll area, consists of 57 miles of varying diameter pipeline, totaling as much as 20-in., with a design capacity of 300 MMcfd of gas.

DIGS expansion will be carried out in two phases. Phase one is expected to provide about 200 MMcfd of firm service by the end of third quarter 1997. Phase two calls for an additional 300 MMcfd of firm service, with completion set during the 1997-98 winter.