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    Shell plans pipeline to serve Magnolia and other developments

    News // May 24, 2002
    Shell Oil Company has announced details of an $87 million natural gas and crude oil pipeline project in the deepwater Gulf of Mexico. The two pipelines will establish an important transportation corridor for new oil and gas developments in the southern Garden Banks areaanchored initially by the Conoco-operated Magnolia development.

    Construction of the pipelines are scheduled to be completed in 2004. The pipelines will extend 50 miles from the Magnolia development in Garden Banks Block 783 to Shell's Enchilada platform hub at Garden Banks Block 128. Both of the pipelines are owned100 per cent by Shell affiliates. Future oil and gas developments will be able to connect into the pipelines at Magnolia or elsewhere along the pipeline route.

    The $ 47 million natural gas pipeline will be built, owned and operated by Shell Gas Gathering. The 16in pipeline will have a capacity of 275 million cubic feet per day, and will connect into the Shell-operated Garden Banks Gas Pipeline System, which will transport the gas to a variety ofpipelines linked to onshore locations.

    The $ 40 million oil pipeline will be built and operated by Shell Pipeline Company. The 14in pipeline will have a capacity of 75,000 barrels per day, and will connect to the existing Auger pipeline system at Garden Banks Block 128. The Auger system provides downstream transportation and market choices, including the Eugene Island and Bonito Crude markets to maximize value to the producer.

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