TULSA, Okla.--(BUSINESS WIRE)--Williams (NYSE: WMB), through its general partner ownership of Williams Partners (NYSE: WPZ), today announced with DCP Midstream Partners, LP (NYSE: DPM) that the new extended Discovery natural gas gathering pipeline system is now flowing natural gas. The Keathley Canyon ConnectorTM deepwater gas gathering pipeline system and the South Timbalier Block 283 junction platform are serving producers in the central ultra-deepwater Gulf of Mexico.
The 20-inch, 209 mile Keathley Canyon Connector, which is capable of gathering more than 400 million cubic feet per day (MMcf/d) of natural gas, originates in the southeast portion of the Keathley Canyon protraction area and terminates into Discovery’s 30-inch diameter mainline at Discovery’s new junction platform. The pipeline was constructed in depths of up to 7,200 feet of water approximately 300 miles south-southwest of New Orleans.
“Building a pipeline in challenging terrain at this depth is incredibly complex, and I applaud our project team for their commitment to completing the project in a safe, environmentally responsible and timely manner,” said Rory Miller senior vice president of Williams’ Atlantic-Gulf operating area. “True to our vision of developing smart, large-scale solutions to move gas to market, we’ve built a highly reliable and cost-effective connection from deepwater production to our onshore Larose gas processing plant and Paradis fractionator.”
The Keathley Canyon Connector extension is supported by long-term agreements with the Lucius and Hadrian South owners, as well as the Heidelberg and Hadrian North owners, for natural gas gathering, transportation and processing services for production from those fields. In addition, the new pipeline system is in proximity to other high-potential deepwater Gulf of Mexico discoveries and prospects.
“With the startup of the Keathley Canyon pipeline the Discovery joint venture is now ready to serve the growing production needs of our deepwater producers. As partners in the project, Williams and DPM are now positioned to significantly benefit from its world class deepwater gathering system,” said Bill Waldheim, President of DCP Midstream Partners. “This is a great fee-based asset which will generate strong distributable cash flows for DPM.”
In addition to the offshore gathering system, the Discovery system includes the 600 MMcf/d Larose natural gas processing plant providing market outlets to six interstate/intrastate gas pipelines and the 35,000 BBL/d Paradis fractionation facility.
Williams owns the controlling interest in and is the general partner of Williams Partners L.P., which owns 60 percent of the Discovery system and operates it. DCP Midstream Partners, LP owns the remaining 40 percent of the Discovery system.
About DCP Midstream Partners, LP
DCP Midstream Partners, LP (NYSE: DPM) is a midstream master limited partnership engaged in the business of gathering, compressing, treating, processing, transporting, storing and selling natural gas; producing, fractionating, transporting, storing and selling NGLs and recovering and selling condensate; and transporting, storing and selling propane in wholesale markets. DCP Midstream Partners, LP is managed by its general partner, DCP Midstream GP, LP, which in turn is managed by its general partner, DCP Midstream GP, LLC, which is 100 percent owned by DCP Midstream, LLC, a joint venture between Phillips 66 and Spectra Energy. For more information, visit the DCP Midstream Partners, LP website at www.dcppartners.com.
Williams (NYSE: WMB) is a premier provider of large-scale infrastructure to connect North American natural gas and natural gas products to growing demand for cleaner fuel and feedstocks. Headquartered in Tulsa, Okla., Williams owns the general partner of and controlling interest in Williams Partners L.P. (NYSE: WPZ), an industry-leading master limited partnership with operations across the natural gas value chain from transportation and processing to petchem production of ethylene, propylene and other olefins. With positions across top U.S. supply basins and also in Canada, Williams Partners owns and operates more than 33,000 miles of pipelines system wide – including the nation’s largest volume and fastest growing pipeline – moving approximately 20 percent of U.S. natural gas for clean-power generation, home heating and industrial use. In addition to gathering, processing, transportation and storage of natural gas and natural gas liquids, Williams Partners is positioned to connect abundant domestic supplies with international markets. www.williams.com
Portions of this document may constitute “forward-looking statements” as defined by federal law. Although the company believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the “safe harbor” protections provided under the Private Securities Reform Act of 1995. Additional information about issues that could lead to material changes in performance is contained in the company’s annual reports filed with the Securities and Exchange Commission.
