The yet-to-be-completed Destin Pipeline is growing with plansfor two extensions to its system in the eastern Gulf of Mexicoproduction area. Destin Pipeline Co. announced two contiguousextensions, with a total estimated cost of $52 million, will servetwo development projects that recently dedicated production tothe1 Bcf/d Destin.

Construction of the two extensions, totaling 45 miles in length,is expected to begin in September, pending approval of the FederalEnergy Regulatory Commission. The completed extensions will resultin a 24-inch diameter pipeline connecting to the Destin 36-inchmainline at a platform hub at Main Pass Block 260.

Completion of the first extension, 13 miles in length, isscheduled for November to transport production from fields at MainPass Blocks 279 and 281 being developed by CNG Producing, WalterOil & Gas Corp., and Sonat Exploration GOM. The secondextension will continue 32 miles to Viosca Knoll Block 900 tointerconnect with production facilities for the deep-water Geminiproject at Mississippi Canyon Blocks 247, 291 and 292 beingdeveloped by Texaco Exploration and Production and Chevron U.S.A.Gemini is scheduled to begin production in the first half of 1999.

“These agreements to extend the Destin Pipeline reflect the highlevel of development activity underway in this part of the Gulf,”said Doug Krenz, senior vice president of Tejas Offshore Pipelines.”We have accelerated the in-service date of Destin to relieve thegrowing capacity constraints on existing transportation systems inthe area.”

Destin Pipeline Co is jointly owned by affiliates of AmocoCorp., Sonat Inc., and Tejas Energy, an affiliate of Shell Oil.Construction of the $460 million gas pipeline and processing plantbegan in December, and initial start-up is scheduled for July. Bythe middle of next year, Destin should be moving about 600 MMcf/d,said Sonat spokesman Bruce Connery. By 2001 or 2002, the pipelineshould be full, moving 1 Bcf/d, he said. “We can definitely fill upthe pipeline with what we have right now. As far as getting a Bcf aday, it’s going to be a little ways down the road before thathappens.”

In addition to the two developments served by the extensions,Destin has received a commitment of production from a field at MainPass Block 226 being developed by Nippon Oil Exploration U.S.A.,and Pogo Producing Co. These are in addition to reserve commitmentsto the Destin system previously announced by Amoco and Shell.Initial production from their Amoco-operated Marlin project isscheduled to begin in the second quarter of 1999. The DestinPipeline also has recently executed an agreement to receive up to400 MMcf/d from the Viosca Knoll Gathering System at Main PassBlock 260.

When completed, the Destin Pipeline will be a 255-mile system,with a 121-mile offshore segment and a 134-mile onshore segment.The 36-inch offshore mainline will extend 76 miles from Main PassBlock 260 to a gas plant under construction by Amoco and Tejas atPascagoula, MS. Destin will continue inland interconnecting withfive major pipelines.

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