Texaco Press Release - MAPCO Joins Texaco in Gulf of Mexico Natural Gas Pipeline Project
MAPCO Acquires 50 Percent Interest in Discovery Project
FOR IMMEDIATE RELEASE: MONDAY, FEBRUARY 3, 1997
TULSA, Okla., Feb. 3 - MAPCO and Texaco today announced that MAPCO has joined in Discovery Producer Services LLC, a company which will construct, own and operate the Discovery Project, a major natural gas pipeline, processing and fractionation complex located onshore and offshore South Louisiana.
Located in the Gulf of Mexico and onshore Louisiana, the $300 million Discovery Project expects to begin accepting natural gas in late 1997. Discovery Producer Services LLC is 50 percent owned by Texaco and 50 percent owned by MAPCO.
"We are pleased to partner with MAPCO on this major project. Their experience in the natural gas liquids area will complement Texaco's expertise in the Gulf of Mexico. We have partnered with MAPCO in the past on natural gas liquids projects such as Seminole Pipeline Company. The Discovery Project's combination of natural gas gathering, transportation, processing and fractionation services will benefit from MAPCO's proven abilities as a partner and operator of liquids projects," said President of Texaco Natural Gas -- North America Terry F. Hudgens.
The 30-inch, 150-mile natural gas pipeline will access deepwater exploration taking place in the central Gulf of Mexico, specifically in the South Timbalier, Grand Isle, Ewing Bank, Green Canyon and Mississippi Canyon areas offshore Louisiana. A cryogenic processing plant capable of processing 650 million cubic feet of gas per day will receive the natural gas at the pipeline's onshore terminus near Larose, La. As part of the project, Discovery also will upgrade a natural gas liquids fractionator in Paradis, La., giving it a capacity of 34,000 barrels per day. The fractionator is expected to begin operating in mid-1998.
"MAPCO's Targeted Market Leadership strategy calls for entry into selected energy markets that offer high growth potential for the company and our shareholders. This is, without a doubt, one of these markets," said Robert G. Sachse MAPCO's Chief Operating Officer. "The Gulf Coast is one of the greatest opportunities in North America for increased natural gas liquids production and we will be participating with producers to access markets in Louisiana, Texas and elsewhere in the United States."
Discovery has filed an application for regulatory approval and will begin construction of the project immediately following that approval.
MAPCO Inc., a diverse energy company, has marketing activities and operations in natural gas liquids, propane marketing, retail petroleum and petroleum refining. One of North America's largest operators of natural gas liquids and ammonia pipelines, the company also operates fractionation and storage facilities, refineries in Alaska and Tennessee, markets petroleum and other merchandise through a network of convenience stores and interstate travel centers and markets natural gas liquids.
Texaco Natural Gas, a Division of Texaco Inc., markets and transports natural gas through Texaco Natural Gas Inc., Bridgeline Gas Distribution LLC, and Sabine Pipe Line Company. This project is one component of Texaco's Gulf of Mexico program, which also includes an aggressive deepwater drilling program, the construction of the Poseidon crude oil pipeline and the application of emerging technologies to improve reservoir characterization and drilling techniques.
Updated: February 1997