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Destin Curtailing 305 MMcf/d With Pascagoula Gas Plant Closed

With the Pascagoula Gas Processing Plant (PGP) still closed on Tuesday, Destin said it continued to be limited by operational capacity to service all of its Gulf of Mexico receipt points that normally transport gas to the key Gulf Coast plant.

Producers and pipelines have been attempting to adjust after an explosion before midnight on June 27 rocked the Enterprise Products Partners LP straddle plant in Mississippi, shutting in about 400 MMcf/d (see Daily GPIJune 29). Enterprise has not provided an estimated date for Pascagoula to be returned to service.

In a customer notice late Monday, Destin said it is using an alternate offshore gas delivery option via the Viosca Knoll Gathering System (VKGS), while total gas flows from Main Pass 260 were limited by operational capacity to 305 MMcf/d from 350 MMcf/d.

"Flows have begun to stabilize and there has been some positive progress made toward reducing imbalances," the pipeline said. "Once the system has been brought back into balance, it may be possible for Destin to return the operational capacity back to 350 MMcf/d."

Fluctuations in pressure were the result of "downstream balance issues at various processing plants." Once those issues are resolved, metered capacity should be able to return to 350 MMcf/d.

Nominations across the system as of Tuesday morning were running at around 317 MMcf/d, according to Genscape Inc. Destin also said it had doubled the allowable volumes of condensate build-up in the mainline to 16,000 bbl from 8,000.

"Assuming their revised estimations for condensate build-up are correct, Destin could potentially see 11 days of total production," Genscape analysts said. "This would mean production would continue throughout the week" as Saturday (July 9) would be day 11. "Presently, though, we do not have a precise method of estimating how much condensate is building in the pipeline because Destin handles condensates at the Pascagoula slug catcher, not the gas plant."

Destin's onshore gas transportation service has not been affected and normal operations continue.

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