Open Seasons Begin for Okeanos Gas Gathering, Destin Pipeline

With increased natural gas exploration and production spurring the need for additional transportation capacity, open seasons on new and recently expanded pipeline and gathering systems in the country continue to spread like wildfire. Okeanos Gas Gathering Co. LLC and Destin Pipeline are just two of the most recent to roll out solicitations.

Okeanos Gas Gathering began an open season last Thursday for parties who want to obtain capacity on its 24-inch, 1 Bcf/d gathering system that is being built in the Gulf of Mexico. The open season will run through Sept. 7.

The system will gather gas from deepwater leases in the central and eastern Mississippi Canyon areas and deliver it to Destin Pipeline at Main Pass 260. Okeanos is two-thirds owned by Mardi Gras Transportation System Inc., a subsidiary of BP America Inc., and one-third by Shell Gas Transmission LLC.

BP will operate the gathering system, which will serve BP and Shell Exploration & Production Co. interests in the Na Kika (Mississippi Canyon 474) and Crazy Horse (Mississippi Canyon 777) fields. However, the line is being developed with additional capacity to serve other producers in the area or other potential shippers.

Destin Pipeline is holding its open season through 1 p.m. CDT Aug. 30 to assess interest in expanded services. Recent offshore developments have indicated a potential need for extra capacity, Destin said. Currently it is capable of moving 1 Bcf/d.

Destin's 255-mile system extends from Viosca Knoll 900 to Main Pass 260, then north to a BP-operated processing plant at Pascagoula, MS, and then further north to interconnections with five major interstate pipelines. Ownership is split between Shell Destin LLC (33%) and BP (67%).

As part of the open season, Destin said it also is soliciting maximum daily quantity reductions from existing shippers "to permanently release firm capacity that would reduce the need for construction of incremental facilities." See Destin's bulletin board or call Gregory J. Koehler at (713) 230-3103 for more information.

For more information on the Okeanos open season call BP's Peter Keith at (281) 366-3366.

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