Leviathan Gas Pipeline Partners and Tejas Energy unveiled NemoGathering Co. yesterday. The new company, which is 66% owned byTejas and 33% owned by Leviathan, has entered into a gas gatheringagreement with Shell Deepwater Development Inc. and will constructa 24-mile, 20-inch gas gathering line connecting Shell’s plannedBrutus development with the existing Manta Ray Offshore GatheringSystem. Tejas will operate the line once it is constructed.

Gas production from Brutus is expected to commence in late 2001and reach a peak rate of 150 MMcf/d. Used as a hub for otherproduction, the Brutus platform’s gas production capacity is 300MMcf/d. The Nemo pipeline will be sized to handle the total hubvolume and will be positioned to compete for additional gasgathering business in the area, Leviathan said.

Nemo is an example of Leviathan’s commitment to expand itspipelines into the strategic areas of the Gulf of Mexico,” said MelScott, an El Paso Energy spokesman. El Paso is the majorityshareholder of Leviathan Gas Pipeline.

Shell recently announced plans to install a tension leg platformto develop its Brutus discovery at Green Canyon Block 158 in 2,980feet of water. The Nemo pipeline will interconnect with the MantaRay Offshore Gathering System at a Leviathan-owned platform locatedin Ship Shoal Block 332.

Manta Ray Offshore is owned by Tejas (50%), Leviathan (25.67%)and Marathon Oil Company (24.33%) and has interconnects withNautilus Pipeline Company, L.L.C.; ANR Pipeline Company;Transcontinental Gas Pipe Line Corporation; and Trunkline GasCompany.

Tejas Energy, L.L.C., an affiliate of Shell Oil Company, isengaged in natural gas transportation, storage and processingactivities in the Gulf Coast area. Leviathan operates or hasinterests in eight gas pipeline systems located offshore Louisianaand Texas which currently gather 3 Bcf/d of natural gas.

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