Diameter

Columbia Gulf said Wednesday it is continuing repairs on the 26-inch diameter Eugene Island System in the Gulf of Mexico following a leak that occurred Sunday (see Daily GPI, Oct. 31). Total production associated with the shut-in is about 10,000 Dth/d at three platforms, the pipeline said. It expects to complete the repair work on or before Saturday, pending line pressure reduction, liquids removal and weather conditions that permit divers to enter the water.

Enbridge Offshore Partners LLC and MarkWest Energy Partners LP have acquired a 14-mile, 12-inch diameter pipeline through their jointly owned Triton Gathering LLC natural gas gathering system to transport new deep-shelf natural gas development from West Cameron blocks 62 and 75 to the Stingray Pipeline in the Gulf of Mexico (GOM). The blocks, owned by El Paso Production Co., Chevron U.S.A. Inc. and Houston Exploration Co., ramped up in May (see Daily GPI, May 17).

Duke Energy Gas Transmission (DEGT) and CenterPoint Energy Gas Transmission (CEGT) signed a memorandum of understanding Thursday to develop a massive natural gas pipeline system that would stretch from the supply basins in West Texas to the metropolitan Pittsburgh, PA, area, providing western producers greater access to midwestern and eastern markets.

Atmos Energy subsidiary Atmos Pipeline and Storage LLC plans to seek an exemption from regulatory oversight by the Federal Energy Regulatory Commission for a 20-inch diameter natural gas gathering system it plans to build in Eastern Kentucky. The proposed 50-mile Straight Creek Gathering System would be capable of moving up to 100,000 MMBtu/d with the ability to expand to 225,000 MMBtu/d. It is designed to relieve transportation constraints and allow gas to flow from shut-in wells. The $80 million system would originate in Floyd County, KY, and extend to an interconnect with the Tennessee Gas Pipeline in Carter County, KY. Atmos said the project is supported by independent oil and gas producers in the area, including Kinzer Drilling, which will have an ownership stake in the project. More than a dozen other producers have signed memoranda of understanding to commit gas volumes to the system and to agree to commercial terms. “We expect our Straight Creek project to help boost natural gas drilling and production in the Big Sandy region of Kentucky,” said Mark H. Johnson, senior vice president, nonutility operations, of Atmos Energy. “The gathering system should help provide year-round dependability for gas producers and should indirectly benefit natural gas customers by helping bring more gas supplies to market as demand continues to grow.” Johnson said production from 1,700 gas wells on the eastern side of the state has been shut in. Construction is expected to begin in the fall of 2006, with operations expected to begin by the summer of 2007.

Duke Energy said Algonquin Gas Transmission is planning a new 3.5 mile, 18-inch diameter natural gas pipeline in the Cape Cod towns of Sandwich and Bourne, MA, to serve gas customer growth. “The Cape Cod Lateral will provide KeySpan with firm natural gas transportation service to continue reliably supplying the growing Cape Cod market,” said Bill Yardley, vice president, marketing, business development and customer service. The proposed pipeline and related facilities will provide KeySpan with 38,000 Dth/d of firm capacity under a 15-year agreement. “Over the past few years, we’ve experienced increased demand for natural gas on Cape Cod as more homeowners are catching onto the benefits of this clean and environmentally friendly heating fuel,” said Nicholas Stavropoulos, president of KeySpan Energy Delivery. “This project, if approved, will provide additional capacity and enable KeySpan to maintain system reliability and enhance delivery capability throughout the Cape Cod area.” An application for the expansion was filed April 21 with the Federal Energy Regulatory Commission. Service is expected in November 2007.

Dallas-based Crosstex Energy LP said Wednesday construction of its $115 million, 24-inch diameter North Texas Pipeline (NTPL) facilities has been completed. The system covers more than 140 miles across six North Texas counties and is designed to gather and transport natural gas out of the prolific Barnett Shale.

Gulfstream Natural Gas System said Monday that it will build a 35-mile, 30-inch diameter pipeline lateral from Martin County to Florida Power & Light’s (FP&L) proposed 2,400 MW West County Energy Center in Palm Beach County under a new 23-year firm transportation agreement that FP&L signed. According to the deal, FP&L will have access to 345,000 Dth/d of firm of capacity on Gulfstream.

Enbridge Inc. announced Wednesday it will conduct a nonbinding open season for a proposed 330-mile long, 36-inch diameter natural gas transmission pipeline that would be designed to transport up to 1 Bcf/d of natural gas from Southeast Texas to Clarke County, MS.

Southern Natural Gas said Thursday it had completed repairs of a leak on its 14-inch diameter Chattanooga Branch line (see Daily GPI, Feb. 1) and the line is back in service. Southern resumed accepting nominations for interruptible deliveries (“B-1” and “IT”) in the affected area effective with Thursday’s Intraday 1 scheduling cycle.