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Connection to help meet fast-growing demands of the power generation market along the Texas Gas system
OWENSBORO, Ky., June 12, 2002 -- A unit of Williams announced recently that it is improving natural gas supply diversity on its Texas Gas pipeline system by connecting to a significant new supply source in offshore Louisiana at East Cameron Block 9 in the Gulf of Mexico, which is being developed by Energy Partners, Ltd.
Williams is currently upgrading existing metering facilities on the East Cameron 9 platform allowing for up to 14.6 million cubic feet per day of new supply to enter its Texas Gas system by July 1, 2002.
"We know supply diversity is important to our customers in recently's increasingly competitive energy marketplace. The new East Cameron supply is a great addition to our portfolio from an area that has long provided supply for the Texas Gas system. This connection will provide another reliable and cost-effective supply option for all our traditional markets and help us meet the fast-growing demands of the power generation market along the Texas Gas system," commented David Englert, project manager for Williams.
The new supply source at East Cameron was Energy Partners' most significant exploratory drilling success of 2001. The well was drilled to 14,158 feet and encountered 111 feet of natural gas in eight sand formations. Additional high-potential supply objectives exist within the area and will be targeted by Energy Partners in subsequent offset well locations. Energy Partners is the operator of the new well and owns a 50 percent working interest. Nexen Petroleum owns the remaining 50 percent.
Energy Partners has signed an agreement with Dunhill Resources, which owns an existing platform and associated processing equipment elsewhere on the block that will be used as the central production facility for the well. "We are very pleased to have finalized arrangements for the production and transportation of natural gas from our recent East Cameron discovery. Williams was able to provide us with exactly the connection we needed to get this supply of natural gas to market as quickly and efficiently as possible," said Richard A. Bachman, Energy Partners' chairman, president and CEO.
Williams' interstate natural gas pipeline system spans the continental United States with access to major supply areas and energy markets. The company's gas pipeline operation is based in Houston and has offices in Salt Lake City and Owensboro.
Founded in 1998, Energy Partners is an independent oil and natural gas exploration and production company based in New Orleans, La. The Company's operations are focused in the shallow to moderate depth waters of the central region of the Gulf of Mexico Shelf. Additional information on the company including news releases is available at Energy Partners' web site at www.eplweb.com.
About Williams
Williams moves, manages and markets a variety of energy products, including natural gas, liquid hydrocarbons, petroleum and electricity. Our operations span the energy value chain from wellhead to burner tip. Williams information is available at www.williams.com.
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