Destin Pipeline says Miss. Pascagoula gas plant work on schedule

Fri May 10, 2013 4:36pm EDT
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NEW YORK May 10 (Reuters) - Destin Pipeline Co LLC on Friday said it had received notice from the operator of the Pascagoula natural gas processing plant in Mississippi that maintenance, begun on May 3, was expected to be completed as planned in about five weeks.

"Once the maintenance work is completed and when minimum flow requirement is achieved, the Pascagoula plant will resume normal operations," Destin said in a website posting.

Destin said it would provide more details on the work as they become available. The company also said it would continue to monitor liquid accumulation on its MP260 platform during deliveries to the alternate delivery point, the Viosca Knoll Gathering System (VKGS), but services to the alternate delivery point were limited.

Destin said its onshore receipt and delivery points would not be affected by the plant turnaround.

The 225-mile Destin gas pipeline system has the capacity to carry 1.2 billion cubic feet per day of supply from offshore Gulf of Mexico to the Pascagoula plant, extending north where it interconnects with nine major interstate gas lines.

It is majority-owned by BP's Amoco Destin Pipeline Co, with Enbridge Offshore owning a 33 percent stake.

The Pascagoula plant is operated by BP and owned by BP America Corp and Enterprise Gas Processing LLC. It straddles the Destin pipeline immediately downstream of the liquid removal facility, which is designed to remove retro-grade condensate that may form in the pipeline.

The liquid removal facility has a design capacity of 10,000 barrels per day. Gas processing capacity is 1.5 bcf per day.

Last week, the chief executive of Plains Exploration & Production said the Pascagoula maintenance would shut in a "tremendous" amount of Gulf of Mexico oil production. Plains said it was notified by BP that the plant would be shut for 36 days starting May 3.