An expansion is planned for the Discovery natural gas gathering pipeline system in the Gulf of Mexico (GOM) to gather more than 400 MMcf/d from the deepwater Keathley Canyon (KC), Walker Ridge and Green Canyon blocks, according to Williams Partners LP and DCP Midstream Partners LP.

The proposed 20-inch diameter, 215-mile-long KC Connector would transport natural gas from several emerging gas fields in the central deepwater GOM. The connector is to originate in the southeast portion of the KC area and terminate into Discovery’s 30-inch diameter mainline near South Timbalier 293.

Discovery has signed long-term agreements with the Lucius and Hadrian South leaseholders for production from those fields. “With the newly signed anchor customers, the Keathley Canyon Connector will provide us with significant growth opportunities for fee-based deepwater gathering volumes on the Discovery system,” said Williams Partners’ Rory Miller, who is president of the midstream unit.

“There is also opportunity for future growth, as it will run in close proximity to several known discoveries and numerous planned-to-be-drilled prospects. It will provide the industry with highly reliable and cost-effective deepwater gathering services and deliver those volumes to our onshore Larose gas processing plant and Paradis fractionator.”

The Larose plant and Paradis fractionator are part of the Discovery system.

Anadarko Petroleum Corp. and its partners sanctioned Lucius, which is in several KC blocks, last month (see Daily GPI, Dec. 16, 2011). Anadarko operates the Lucius unit and holds a 35% stake; other stakeholders are Plains Exploration & Production Co. (23.3%), ExxonMobil Corp. (15%), Apache Corp. subsidiary Apache Deepwater LLC (11.7%), Brazil’s Petroleo Brasilerio, or Petrobras (9.6%), and Italy’s Eni SpA (5.4%).

ExxonMobil operates the Hadrian North and South prospects, which are in several KC blocks (see Daily GPI, June 9, 2011). The supermajor operates and has a half-interest in KC 918 and KC 919; Petrobras America Inc. holds the remaining stake in KC 918. Eni Petroleum US LLC and Petrobras each hold a one-quarter stake in KC 919.

The Lucius and Hadrian partners last summer finalized a unitization agreement to jointly develop a portion of the Lucius field (see Daily GPI, July 19, 2011).

Construction is scheduled to begin in 2013, with in-service set for mid-2014. Total capital expenditures for the KC Connector are estimated at $600 million. Williams Partners operates and owns 60% percent of the Discovery system; DCP Midstream Partners owns the remaining stake.

The expansion, which is supported by long-term agreements with “experienced deepwater producers, facilitates the Discovery system’s ability to attract additional gathering and processing volumes in the future,” said DCP Midstream Partners CEO Mark Borer.

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