Six interstate pipeline companies plan to consolidate competing projects to help speed development of gas reserves in Mobile Bay off Alabama.
A letter of intent signed by the companies calls for as much as 1.2 bcfd of gas to move through jointly owned lines. With the letter, essentially all pipeline companies proposing projects in the Mobile Bay area have agreed to one project.
Participants in the settlement are ANR Pipeline Co., Florida Gas Transmission Co., Southern Natural Gas Co., Tennessee Gas Pipeline Co., Texas Eastern Transmission Corp., and Transcontinental Gas Pipe Line Corp. (TGPL).
The group expects soon to ask the Federal Energy Regulatory Commission for prompt review of the plan during the commission's Mobile Bay open season proceedings.
WHAT'S PLANNED
Onshore facilities will include TGPL's 123 mile, 30 in. pipeline extending from Mobil Oil Exploration & Producing Southeast Inc.'s gas processing plant in Mobile County, Ala., to a connection with TGPL's mainline near Butler, Ala. Southern Natural will lay a loop and add compression to increase capacity of the onshore system to 1.2 bcfd from 300 MMcfd.
TGPL will lay a 77 mile, 700 MMcfd offshore line from Main Pass Block 252 to a Shell Offshore Inc. plant under construction in Mobile County.
Pending FERC approval, work is expected to begin early in 1991.
TGPL will operate the onshore pipeline, and Enron Corp., 50% owner of Florida Gas Transmission, will operate the offshore line.
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