The deepwater Gulf of Mexico Independence Hub natural gas platform and the associated Independence Trail pipeline were closed Wednesday after a leak was discovered in the pipe, according to Enterprise Products Partners LP, which owns 80% of the production platform and 100% of the pipeline.

“While we are still putting the details together, the main point is that operations on the hub and the Independence Trail have been suspended following the discovery of a leak on the Independence Trail export pipeline,” said Rick Rainey, a spokesman for Enterprise. “At this point we have engineers and operational people on site determining the cause and extent [of the leak]. The hub had been averaging production of around 900 MMcf/d.”

News of the problem at Independence, combined with a bullish Atlantic hurricane forecast released Wednesday by Colorado State University’s esteemed storm forecast team, boosted near-month natural gas futures back above $10. The May contract recorded a high on Wednesday of $10.100 before closing out the day at $10.056, up 35.9 cents from Tuesday’s finish (see related story).

In a Wednesday afternoon press release, Enterprise expanded upon the details of the incident, noting that no fire or injuries were associated with the leak, which was first suspected Tuesday, prompting the shutdown of operations as a safety precaution. “The leak was confirmed [Wednesday] morning using a remote-operated vehicle,” Enterprise said. “There are no indications of any environmental impact and Enterprise has notified the appropriate regulatory agencies of the situation.”

The company said initial investigations indicated that the leak is originating from a stainless steel O-ring gasket located on the flex joint in approximately 85 feet of water. The flex joint assembly, which connects the pipeline to the platform, allows the pipeline to withstand movements caused by the platform. “Enterprise is in the process of dispatching equipment and personnel required to make the necessary repairs, which are expected to arrive within the next few days. The partnership currently estimates that the repairs will take one to four weeks,” the company said.

According to Bentek Energy, Anadarko Petroleum said it shut in production at Independence Hub on Tuesday after bubbles were noticed rising to the surface. A remotely operated subsea vehicle was expected to inspect the Hub Wednesday. “Production dropped to about 218,000 Dth/d in yesterday’s I2 cycle from 891,000 Dth/d on Monday,” the Golden, CO-based research and analysis firm said. “Flows from the Hub have increased [Wednesday] to 438,000 Dth/d but Anadarko said the increase is related to a line purge. Production is expected to remain shut in for Thursday’s gas day and possibly longer unless no serious problems are found during the inspection [Wednesday].”

This is the second production interruption in the platform’s short operational history. Natural gas production was interrupted in late November to conduct routine maintenance (see Daily GPI, Nov. 21, 2007). The hub, which began operating in late July, has been producing from 15 wells. Located in 8,000 feet of water on Mississippi Canyon Block 920, approximately 123 miles southeast of Biloxi, MS, the Independence Hub is the deepest-water production platform ever installed and also is the world’s largest offshore gas processing facility. Installation was completed last year (see Daily GPI, March 9, 2007).

The hub is a 105-foot, deep-draft semisubmersible platform with a two-level production deck. The gas processed through the hub when operating at full capacity represents an increase of more than 10% in supplies from the Gulf of Mexico. The platform is operated by Anadarko Petroleum Corp. Helix Energy Solutions Group Inc. owns the remaining 20% interest that Enterprise Products Partners LP doesn’t hold. Companies producing natural gas from the platform include Anadarko, Statoil Hydro, Devon Louisiana Corp. and Italy’s Eni Spa.

Enterprise also owns and operates the Independence Trail pipeline, which connects the hub platform to onshore markets via an interconnect with Tennessee Gas Pipeline at Enterprise’s West Delta Block 68 shallow-water manifold platform. The 24-inch diameter pipeline is approximately 134 miles long and has the capacity to transport up to 1 Bcf/d.

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