Vastar Resources and Newfield Exploration Co. have selectedWilliams to gather, process and transport nearly 75 MMcf/d ofnatural gas from offshore wells along the Alabama coast. The twoenergy producers are jointly developing reserves in the Gulf ofMexico’s Mobile Bay area, the location where Williams recentlyadded 350 MMcf/d of transportation capacity and a wholly-owned 600MMcf/d processing plant onshore. The Williams plant is located inCoden, AL.

Under the long-term agreements between Vastar, Newfield andWilliams, affiliates will gather the offshore gas produced fromeastern Main Pass 264, transport it to shore for processing at theCoden plant and then deliver the residue gas to market.

“Williams has invested heavily in the eastern Gulf of Mexico,”said Alan Armstrong, vice president of gathering and processing inWilliams’ midstream unit. “We added new transportation capacity onTransco in 1998 and put our Mobile Bay plant online in July 1999.We’re very pleased with the volumes we’ve seen coming into theseoperations. Our plant is already running at or near capacity andwe’re getting close to filling up our new pipeline capacity.”

Currently, Williams is connecting the Vastar and Newfieldproduction facility to its gathering lines and expects to beginreceiving initial volumes by the end of this month.

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