Leviathan and Tejas to build Gulf of Mexico gas gathering pipeline

Aug 11, 1999 02:00 AM

Leviathan Gas Pipeline Partners, L.P. and Tejas Energy, L.L.C. announced that affiliates of the two companies have formed Nemo Gathering Company, L.L.C. to build a new pipeline to gather natural gas from the Deepwater Gulf of Mexico.
Nemo, owned 66.08 % by Tejas and 33.92 % by Leviathan, has entered into a gas gathering agreement with Shell Deepwater Development Inc. and will construct a 24-mile, 20-inch gas gathering line connecting Shell's planned Brutus development with the existing Manta Ray Offshore Gathering System. Tejas will operate the line once it is constructed.
Shell recently announced plans to install a tension leg platform to develop its Brutus discovery at Green Canyon Block 158 in 2,980 feet of water. The Nemo pipeline will interconnect with the Manta Ray Offshore Gathering System at a Leviathan-owned platform located in Ship Shoal Block 332.

Manta Ray Offshore is owned by Tejas (50 %), Leviathan (25.67 %) and Marathon Oil Company (24.33 %) and has interconnects with Nautilus Pipeline Company, L.L.C.; ANR Pipeline Company; Transcontinental Gas Pipe Line Corporation; and Trunkline Gas Company.

Gas production from Brutus is expected to commence in late 2001 and reach a peak rate of 150 mm cfpd of gas. Used as a hub for other production, the Brutus platform's gas production capacity is 300 mm cfpd. The Nemo pipeline will be sized to handle the total hub volume and will be strategically positioned to compete for additional gas gathering business in this prolific Deepwater area.

Tejas Energy, L.L.C., an affiliate of Shell Oil Company, is engaged in natural gas transportation, storage and processing activities in the Gulf Coast area.

Leviathan Gas Pipeline Partners, L.P. is a publicly owned master limited partnership which was formed to acquire, own and manage offshore pipelines and related assets. Leviathan operates or has interests in eight natural gas pipeline systems located offshore Louisiana and Texas which currently gather approximately 3 bn cfpd.
In addition, Leviathan owns working interests in five offshore leases and a 36 % interest in the Poseidon Oil Pipeline, a crude oil system designed to serve new developments in the subsalt and deepwater areas of the Gulf of Mexico.
El Paso Energy Corporation is the general partner of Leviathan and owns an effective 34.5 % economic interest in Leviathan.

With over $ 10 bn in assets, El Paso Energy Corporation provides energy solutions through its strategic business units: Tennessee Gas Pipeline Company, El Paso Natural Gas Company, El Paso Field Services Company, El Paso Power Services Company, El Paso Energy Marketing Company, and El Paso Energy International Company.

Source: El Paso Energy
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