Phase I of Transcontinental Gas Pipe Line's Mobile Bay Lateral
expansion went into operation Aug. 1, providing 350 MMcf/d of
capacity from the Outer Continental Shelf to Station 82 and 214
MMcf/d onshore from Station 82 to Transco's mainline near Butler,
AL. July 1 was the initially targeted in-service date.
Phase I of the Mobil Bay Lateral expansion solved bottlenecks
for shipper Snyder Oil Corp. Snyder was able to increase Main Pass
gas production by about 60% to 300 MMcf/d gross and 120 cubic
feed per day net. With the new takeaway capacity in place, the
company brought its Main Pass 261 A-3 and A-5 wells on line and is
planning to complete the A-4 well later this month. "We expect our
second half production from the Gulf of Mexico to increase more
than 50 percent compared to the first half of the year now that the
Transco pipeline is operational at Main Pass," William G. Hargett,
Snyder chief operating officer. "With the additional volumes being
placed on production, we are confident in reaching our corporate
target of increasing production by 40 percent this year from our
core properties despite the one-month delay in Transco coming
Phase II of the expansion is expected to provide an additional
135 MMcf/d of onshore capacity in November. Upon completion of both
phases, the project will transport 350 MMcf/d from the OCS to the
Transco mainline and increase the capacity on the existing lateral
from 520 MMcf/d to 784 MMcf/d.
Joe Fisher, Houston
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