Enterprise Products Partners L.P. (NYSE:EPD), LLOG Exploration Company LLC and LLOG Deepwater Development Company, LLC have executed interconnect and transportation agreements for natural gas production from four blocks in the Mississippi Canyon area of the Gulf of Mexico, including LLOG Exploration's Who Dat Field.
The volumes will be delivered into Enterprise's Independence Trail pipeline through a new 10-inch diameter, 17-mile natural gas export pipeline originating from the LLOG-operated Opti-Ex production platform that will be installed at Mississippi Canyon Block 547. The export pipeline will be owned by LLOG Deepwater Development Company, LLC. The Independence Trail pipeline will transport the natural gas volumes to an interconnect with Tennessee Gas Pipeline at Enterprise's West Delta 68 platform.
LLOG's 10-inch diameter export pipeline will interconnect with Independence Trail at a subsea tee assembly that Enterprise pre-installed in more than 4,400 feet of water at Mississippi Canyon Block 553. This is one of several subsea assemblies that were pre-installed on Independence Trail when it was built in 2007. After LLOG's tie-in, Independence Trail will have four tee assemblies available to accommodate additional export pipelines. Installation of the production platform at Mississippi Canyon Block 547 is expected in the second quarter of 2011, with first production scheduled to begin in the second half of 2011.
"We are pleased to work with LLOG, one of the most active independent producers in the eastern Gulf of Mexico," said Michael A. Creel, president and chief executive officer of Enterprise's general partner. "Having the flexibility to link additional pipelines from multiple producing areas was one of the considerations that went into the planning and design of the Independence Trail pipeline. This planning and the additional capital investment at the time Independence Trail was built have resulted in a more cost-efficient solution for our customers because these types of tie-ins can be done quickly and require little to no additional capital investment. This interconnect with LLOG will have the capability to add up to 150 million cubic feet per day (MMcf/d) of incremental natural gas volumes to the Independence Trail, and provide an additional source of fee-based revenue for our partnership."
Scott Gutterman, president and chief executive officer of LLOG Exploration, L.L.C. added, "We are excited to expand out relationship with Enterprise and secure firm transportation for the natural gas that will be produced from the Who Dat Field."
The Independence Trail, which has a capacity of approximately 1 billion cubic feet of natural gas per day, originates at the Independence Hub platform and extends 134 miles to Enterprise's West Delta 68 platform.