The first phase of the Dauphin Island Gathering System (DIGS)expansion was put in service last week, making it the first easternGulf of Mexico pipeline to transport deep-water production toonshore facilities in Alabama. When complemented by the secondphase of its expansion, DIGS – a project of the Dauphin IslandGathering Partners (DIGP) – will have the capability to deliver upto 1.1 Bcf/d to onshore markets and pipelines in south Alabama andsouth Louisiana. The system will have hub platform capabilities atmultiple locations on the Outer Continental Shelf and in deep-waterareas. It is expandable with the addition of compression.
The system is positioned to accommodate new shallow- anddeep-water supply. Existing rich gas production sources and thosethat will be attached in the future will be offered services at theMobile Bay Processing Plant in Mobile, AL, which is expected to beoperational later this year.
Phase I of the DIGS expansion is a 65-mile, 24-inch-diameterline connecting DIGP’s gathering system in Main Pass Blocks 225 and223 with its system in Alabama State Tract 73. Six producers haveexecuted long-term agreements for 192,500 Dth/d of capacity onPhase I. Total capacity of Phase I is 230,000 Dth/d. Phase II is a13-mile, 24-inch diameter continuation of Phase I, stretching fromAlabama State Track 73 to the new onshore Mobile Bay ProcessingPlant near Coden, AL. Phase II is under construction and isexpected to be completed this summer.
DIGP will be connecting new supplies to the expanded system,including Main Pass Blocks 198 & 213, operated by Coastal Oil& Gas USA; and Main Pass Blocks 199 & 200, operated byVastar Resources. These are scheduled to flow into DIGS in thesecond quarter from two new producing platforms. Also, developmentdrilling in dedicated blocks around the Main Pass East Addition andLower Viosca Knoll areas will add new production during the thirdand fourth quarters.
DIGP has agreed with Newfield Exploration to connect its MainPass Block 256 production to DIGS by first quarter 1999. DIGP alsohas executed a letter of intent with the owners of the Virgoproject to connect its Viosca Knoll Block 823 production to DIGS byfirst quarter 2000.
DIGP is composed of subsidiaries of Duke Energy, 37.3%; MCNEnergy, 34.5%; Coastal, 13.6%; Consolidated Natural Gas, 13.6%; andOffshore Energy Development, 1%.
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