Williams Field Services has snagged a big fish for its large newMobile Bay processing plant, signing up to process 300 MMcf/d ofgas for Exxon Company USA. The deal is the largest processingcontract to date for Williams. The NGL extraction plant to be builtnear Coden, AL is expected to be in service by the first quarter ofnext year and will have 600 MMcf/d of inlet capacity.

The Exxon gas represents dedicated production from multipleleases in the Mobile Bay area. Remaining plant capacity will befilled through the expansion of the Transco Mobile Bay Lateral aswell as other gas production currently flowing on the existingTransco pipeline. A spokeswoman said the company expects to signfive or six more contracts to handle gas at the new plant, which isexpandable up to at least 900 MMcf/d.

“This contract represents the anchor tenant in our Mobile BayProcess plant – just one piece of Williams’ overall Mobile Bayinvestment strategy,” field services general manager Steve Malcolmsaid of the Exxon contract. “These investments cover offshoregathering, transmission, processing, NGL transportation,fractionation, and marketing of NGL and gas products.”

Early this month the Federal Energy Regulatory Commission (FERC)issued a final order authorizing Williams to expand its existingonshore Transco Mobile Bay Lateral and extend it into the offshoreMobile Bay area. “The additional capacity created by the expansionwill allow Transco to serve the needs of its many customers thataccess gas supplies at Station 85 and is timed to coincide withsignificant new production that will cone on line later this year,”said Cuba Wadlington Jr., general manager.

The existing 30-inch, 123-mile Mobile Bay Lateral extends froman interconnection with the Transco mainline near Butler, AL, toCompressor Station 82 near Coden, AL. The 76-mile offshoreextension, which will consist of about 19 miles of 30-inch and 57miles of 24-inch pipe, will have a capacity of 350 MMcf/d. The30-inch line will extend from the junction platform to East MainPass Block 261 near the edge of the Outer Continental Shelf.

In other Williams news, shareholders are scheduled to vote thismorning on the company’s proposal to acquire Mapco Inc. JoeFisher, Houston

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