Increased natural gas development in the Gulf of Mexicocontinues at break-neck speed. Daulphin Island Gathering Partners(DIGP) recently completed two projects that will expand natural gasservice in the gulf.

DIGP, a joint venture comprised of Duke Energy Field Services,MCN Energy, Coastal Dauphin Island Co., (a Coastal Corp. affiliate)and Dominion, began providing a gathering and transportationservice on a new lateral which connects four Coastal Oil & Gasmain pass area production blocks by way of the Main Pass 265platform. As new wells are brought on line, the initial output of25 MMcf/d will grow to at least 70 MMcf/d by the fourth quarter ofthis year. DIGP delivers the gas to Coden, AL, where Mobile BayProcessing Partners’ plant processes, and then redelivers, the gasto interstate markets.

DIGP also commenced service to El Paso Production Co. andChevron U.S.A. Production from Viosca Knoll Block 385. Block 385attaches to DIGP’s 24-inch pipeline, which transports the gas backto the Mobile Bay Processing partners’ plant,and then on to theinterstate markets. The Carbonate Trend is the name of the activeexploration and production area where the block resides. The areahas more than 100 blocks under lease or in development.

“Completion of these two projects signifies DIGP’s continuedcommitment to expand its infrastructure in the Gulf of Mexico,”said Brad Reese, vice president of Duke Energy Field Services.”DIGP’s system is strategically located to connect this burgeoningsupply area to the rapidly developing Florida interstate projects.”

DIGP is operated by PanEnergy Dauphin Island, a subsidiary ofDuke Energy Field Services.

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