In an effort to improve its supply diversity on its Texas Gas Transmission (TGT) system, a unit of Williams said last week that it is connecting to a “significant” new supply source in offshore Louisiana at East Cameron Block 9 in the Gulf of Mexico, which is being developed by Energy Partners, Ltd.

Williams said it is currently upgrading existing metering facilities on the East Cameron 9 platform, which when finished, will allow for up to 14.6 MMcf/d of new supply to enter TGT by July 1. “We know supply diversity is important to our customers in today’s increasingly competitive energy marketplace,” said David Englert, project manager for Williams. “The new East Cameron supply is a great addition to our portfolio from an area that has long provided supply for the Texas Gas system. This connection will provide another reliable and cost-effective supply option for all our traditional markets and help us meet the fast-growing demands of the power generation market along the Texas Gas system.

Energy Partners says the new supply source at East Cameron was its most significant exploratory drilling success of 2001. The well was drilled to 14,158 feet and encountered 111 feet of natural gas in eight sand formations. The New Orleans-based independent oil and gas exploration and production company said that additional high-potential supply objectives exist within the area and will be targeted in subsequent offset well locations. Energy Partners is the operator of the new well and owns a 50% working interest. Nexen Petroleum owns the remaining stake.

Energy Partners said it has signed an agreement with Dunhill Resources, which owns an existing platform and associated processing equipment elsewhere on the block that will be used as the central production facility for the well.

“We are very pleased to have finalized arrangements for the production and transportation of natural gas from our recent East Cameron discovery,” said Richard A. Bachman, Energy Partners’ CEO. “Williams was able to provide us with exactly the connection we needed to get this supply of natural gas to market as quickly and efficiently as possible.”

Founded in 1998, Energy Partners said it is focusing mainly on the Central Gulf of Mexico Shelf area due to the favorable geologic and economic conditions, including multiple reservoir formations, regional economies of scale, extensive infrastructure and comprehensive geologic databases. The company said most of its properties are located in the Terrebonne Trough area of the region. As of Dec. 31, 2001, Energy Partners had estimated proved reserves of approximately 61.8 Bcf of gas and 25,462 thousand bbls of oil, or an aggregate of approximately 35.8 million Boe.

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