Enbridge Inc. last week increased its ownership interest in Neptune Pipeline Co., which owns a major natural gas pipeline and gathering system in the Gulf of Mexico, by acquiring Marathon Oil's Marathon Gas Transmission Inc. for an undisclosed amount.
Marathon Gas Transmission holds a 24.33% interest in Neptune, which owns the Nautilus gas transmission pipeline and Manta Ray gathering pipeline, both located in the Gulf of Mexico. The acquisition brings Enbridge's ownership interest in Neptune to 74.33%, with Enterprise Products Partners holding the remaining interest, the Calgary, Alberta-based energy company said.
Nautilus consists of a 30-inch diameter pipeline that extends 103 miles from a platform in Ship Shoal Block 207 in the central Gulf of Mexico region to the offshore Garden City area in South Central Louisiana, where it interconnects with seven pipelines. The 600 MMcf/d Nautilus system receives natural gas supply from the Manta Ray gathering system, which has various receipt points in the Central Gulf, including the newly constructed Cleopatra Gathering System in which Enbridge has a 22% ownership interest.
The Manta Ray gathering system includes 250 miles of pipe ranging from 10- to 24-inch diameter and has 21,100 horsepower of compression located offshore. Capacity on the Manta Ray ranges from 800 MMcf/d to 1 Bcf/d, Enbridge said.
"While Hurricanes Katrina and Rita have certainly had a significant impact on the people of the Gulf, and on some of the energy infrastructure there, the hurricanes in no way diminish our interest in the future of the Gulf as a source of energy supply for North America. The Gulf of Mexico remains a key region for continental supply growth, and Enbridge plans to be a key player in that development," said Enbridge President Patrick D. Daniel.
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