MOBIL PLANS TO ACQUIRE SHARE IN MOBILE BAY LINE

Mobil Natural Gas Inc. plans to acquire an interest in Transco Energy Co.'s Mobile Bay, Ala., pipeline system. The acquisition is subject to Federal Energy Regulatory Commission approval. Mobil and Transcontinental Gas Pipe Line Corp. (TGPL) agreed to form a partnership to purchase the pipeline facilities. They will each have a 50% interest in the partnership with TGPL as operator.

March 26, 1990

2 min read

Mobil Natural Gas Inc. plans to acquire an interest in Transco Energy Co.'s Mobile Bay, Ala., pipeline system.

The acquisition is subject to Federal Energy Regulatory Commission approval.

Mobil and Transcontinental Gas Pipe Line Corp. (TGPL) agreed to form a partnership to purchase the pipeline facilities. They will each have a 50% interest in the partnership with TGPL as operator.

The 30 in., 123 mile line extends from Mobil's Mary Ann field gas treatment plant near Coden, Ala., to an interconnection with Transco's main line near Butler, Ala. Mobil obtained an option to participate in the pipeline under a 1986 agreement with TGPL.

The line currently transports 40 MMcfd of gas, the volume Mobil is treating at its Mary Ann plant. The gas can be sold only intrastate, however, because TGPL does not have FERC approval to sell it interstate.

TGPL built the line without first obtaining FERC approval to sell the gas on interstate markets. FERC has delayed a decision while it considers other applications to lay competing lines in the area.

The Mobil-TGPL partnership plans to ask FERC to authorize the acquisition and certify operation of the line under a blanket certificate for open access transportation.