Williams Agrees To Operate Discovery Producer Services In SE Louisiana

Williams has agreed to become the operator of Discovery Producer Services, LLC and Discovery Gas Transmission, LLC -- a gas gathering and processing system in southeast Louisiana and offshore Gulf of Mexico. Williams also owns a 50 percent stake in the Discovery assets.

"This move allows us to more fully develop the growth potential of these important Gulf Coast assets," said Alan Armstrong, senior vice president and general manager for Williams' midstream unit. "By taking on the lead role as operator, we will work alongside our partners to provide additional market outlets and reliable customer service to producers."

The Discovery infrastructure consists of:

• 105-mile, 30-inch-diameter mainline that reaches the edge of the Outer Continental Shelf at Ewing Bank 873, delivering natural gas to onshore delivery points.

• 112 miles of gathering laterals, including one that reaches Green Canyon 254 in 3,200 feet of water.

• 600 million cubic feet per day cryogenic gas processing plant near Larose, La.

• 42,000 barrel per day natural gas liquids fractionator near Paradis, La.

• Fixed-leg platform at Grand Isle 115 to host deepwater developments.

Williams' manager of commercial operations, Kevin Rehm, has been appointed vice president of the Discovery assets to manage the commercial and partnership aspects of the business.

The Discovery assets were previously operated by a unit of Texaco, which is divesting its 33.3 percent ownership stake to Duke Energy Field Services to satisfy a condition from the Federal Trade Commission for closing the merger between Texaco and Chevron. Upon completion of the sale to Duke, the operations role will be assigned to Williams.

Discovery is one portion of Williams' overall gathering and processing portfolio in the Gulf. The company recently completed construction of a new 300 MMcf/d gas processing plant in Markham, Texas, and new oil and gas pipelines that serve the Nansen and Boomvang deepwater fields in the western Gulf.

Williams also has a 600 MMcf/d per day gas plant in Coden, Ala., a 500 MMcf/d gas plant in Cameron Parish, La., and is completing a 500 MMcf/d production-handling facility known as Canyon Station in East Main Pass 261 south of Mobile Bay.

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