Shell, Enterprise plan new gas pipeline in deepwater western Gulf of Mexico

Shell Gas Transmission and Enterprise Products Partners jointly plan to construct a $40 million pipeline in the western Gulf of Mexico.

Sep 19th, 2002

By OGJ editors

HOUSTON, Sept. 19 -- Shell Gas Transmission LLC and Enterprise Products Partners LP, both of Houston, jointly plan to construct a $40 million pipeline in the western Gulf of Mexico to deliver natural gas from the deepwater Garden Banks area to existing pipeline facilities.

The proposed 16-in. Triton pipeline would extend 41 miles from the deepwater Gunnison development on Garden Banks to a connection with Stingray Pipeline Co. LLC's natural gas pipeline to shore.

The Triton pipeline will have a capacity of 275 MMcfd, sufficient to accommodate Gunnison's 200 MMcfd production (OGJ, Feb. 18, 2002, Newsletter, p. 8) plus additional volumes from future developments in the area, Shell said.

Gunnison, the first discovery in this area, is on Garden Banks Blocks 667, 668, and 669 in 3,150 ft of water. Gunnison is being developed with a truss spar platform that can serve as a hub for future development and third-party production. Gunnison production of 40,000 b/d of crude oil, expected in early 2004, will be moved via a 90-mile, 18-in. gathering pipeline from Garden Banks Block 668 to a shallow-water platform on Galveston Block A244 (OGJ Online, Feb. 26, 2002).

Kerr-McGee Oil & Gas Corp., a wholly owned subsidiary of Oklahoma City-based Kerr-McGee Corp., is operator and owns 50% working interest in the Gunnison development. Nexen Petroleum Offshore USA Inc. holds 30%, and Energy Resource Technology Inc., a subsidiary of Cal Dive International Inc., owns the remaining 20%.

The Triton pipeline, to be owned by Triton Gathering LLC and operated by Kerr-McGee, is expected to be online as early as November 2003. Triton also owns gas-gathering lines that connect to the Stingray pipeline system. Triton and Stingray are jointly owned by Shell and Enterprise.

"This extension to our Triton system represents an important expansion of the gas transportation infrastructure in the western Garden Banks corridor," said Doug Krenz, president of Shell Gas Transmission. Shell said it owns or has significant interest in "the largest network of natural gas transmission and gathering systems serving the deepwater Gulf of Mexico."

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