Construction of Williams’ Canyon Station — a fixed-leg platform in 300 feet of water in East Main Pass Block 261 — has been completed and is ready to receive up to 500 MMcf/d from 10 subsea wells 55 miles out in the deepwater Camden Hills, Kings Peak and Aconcagua fields. The Gulf of Mexico platform was completed on a fast, 18-month track. Deliveries are expected to begin in late September when feeder lines are connected, reaching 300 MMcf/d by the end of October and full capacity by the end of the year.

Phil Wright, president of Williams’ energy services unit, said, “The deck is set, the generators are running and we’re raring to go. We acted quickly to reach an agreement with the producers 18 months ago to build a world-class platform for their large-scale deepwater development.” Williams is prepared to expand capacity if production increases, according to spokesman Kelly Swan.

Gas production from approximately 35,000 acres of federal leases is dedicated to the new production handling platform in federal waters, approximately 60 miles south of Mobile Bay, AL. Construction was completed on schedule at the end of June. The jacket was installed in October 2001, followed by the deck and all of the topsides equipment in May 2002.

The facility will treat, process and handle natural gas and gas liquids from the wells producing in 5,000 to 7,200 feet of water. All subsea well monitoring, flow control and chemical injection will be done from Canyon Station by Williams personnel. Williams is also using an innovative methanol recovery process developed by Houston-based Paragon Engineering to provide flow assurance for the deepwater wells.

Gas can be delivered onshore to a variety of markets via three pipeline outlets, including Williams’ Transco system that runs north along the eastern seaboard.

The gas fields are being developed by their owner companies and operated by TotalFinaElf E&P USA, Inc., Marathon Oil Company and BP. The fields are linked into the Canyon Express gathering system, which is operated by TotalFinaElf E&P USA, Inc. and jointly owned with Marathon Oil Company, BP, Pioneer Natural Resources Company and Nippon Oil Exploration USA Ltd.

Wright said “All of our contractors, along with the Minerals Management Service and the technical talent from the Canyon Express producers, have worked diligently to reach this point.”

The new platform will be fed by two 12-inch diameter flow lines owned by the Canyon Express producers. The feeder lines are scheduled to be completed over the next two months, allowing first deliveries through the platform to begin in September.

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