Williams Cos. Inc. (NYSE: WMB) said Feb. 9 that its ultradeepwater Gulf of Mexico (GoM) pipeline system, the Discovery, is now flowing natural gas.

The announcement with DCP Midstream Partners LP (NYSE: DPM) was made through Williams’ general partner ownership of Williams Partners LP (NYSE: WPZ), the company added.

Williams owns the controlling interest in Williams Partners, which owns 60% of the Discovery system and operates it. DCP Midstream owns the remaining 40%.

The Keathley Canyon Connector deepwater gas gathering pipeline system and the South Timbalier Block 283 junction platform are the producers.

The 20-inch, 209-mile Keathley Canyon Connector begins in the Keathey Canyon area’s southeast portion and ends at Discovery’s 30-inch diameter mainline at its new junction platform. The connector can gather more than 400 million cubic feet per day (MMcf/d) of natural gas. The pipeline was built in about 7,200 feet of water about 300 miles south-southwest of New Orleans.

The Keathley Canyon Connector is supported by long-term agreements with the Lucius, Hadrian North, Hadrian South and Heidelberg owners. The agreements allow gas gathering, transportation and processing services for production from those fields.

The Discovery system also includes the 600 MMcf/d Larose natural gas processing plant and the 35,000 barrel per day Paradis fractionation facility.

“With the startup of the Keathley Canyon Pipeline the Discovery joint venture is now ready to serve the growing production needs of our deepwater producers. As partners in the project, Williams and DPM are now positioned to significantly benefit from its world-class deepwater gathering system,” said Bill Waldheim, DCP Midstream’s president. “This is a great fee-based asset which will generate strong distributable cash flows for DPM.”

Williams Cos. Inc. is based in Tulsa, Okla.

Source: Business Wire

Offshore