CENTANA ENERGY AND CNG ENERGY SERVICES TO BUILD GAS AND OIL GATHERING SYSTEM IN THE GULF OF MEXICO.HOUSTON--(BUSINESS WIRE)-- July 12, 1995--Centana Energy Corporation and CNG CNG Compressed Natural Gas CNG Calling (Tone) CNG Comfort Noise Generation CNG Cryptography Next Generation (Microsoft Windows Vista) CNG Centre National de Génotypage Energy Services Corporation today announced the companies are forming a partnership to build an estimated $60 million offshore gathering pipeline system to serve two growing production areas of the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east -- Main Pass and Viosca Knoll. The gathering system will have the capacity to carry 300 million cubic feet per day of natural gas, 5,000 barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. of condensate condensate, matter in the form of a gas of atoms, molecules, or elementary particles that have been so chilled that their motion is virtually halted and as a consequence they lose their separate identities and merge into a single entity. and 25,000 barrels per day of crude oil. Construction is scheduled to begin this year and continue through 1996. Both Main Pass and Viosca Knoll are in the eastern Gulf south of Mobile Bay, Ala., with Main Pass in shallower water closer to shore and Viosca Knoll primarily in deeper water off the continental shelf. "It's clear that production in the Main Pass and Viosca Knoll areas has already surpassed the capacity of existing gathering pipelines," said Russell Gifford, president of CNG Energy Services. "More reserves can be developed and more natural gas and oil delivered to U.S. consumers if we can add more gathering lines in an area that is very important to our domestic energy supply." "This project establishes Centana's commitment to be an offshore gatherer in the Gulf of Mexico," said Jim Mogg, president of Centana Energy Corporation. "The project provides additional oil and gas gathering and condensate handling services for producers in the Main Pass and Viosca Knoll areas. The producers will also have access to gas processing onshore." The project includes building 30 miles of 20-inch diameter pipeline that would bring natural gas from the Main Pass production area to an existing interstate line at Main Pass 165 operated by Texas Eastern Transmission Corporation, which, like Centana, is a Panhandle Eastern Panhandle Eastern Pipe Line Company, LP is a natural gas pipeline which brings natural gas from the panhandle region of Oklahoma east through the Midwest to supply Indiana and Ohio. It is owned by Panhandle Energy - Southern Union Gas Company. Its FERC code is 28. Corporation subsidiary. The second phase of that pipeline would be a 17-mile extension from Main Pass to Viosca Knoll 826. The project also will provide separation, dehydration, condensate handling and natural gas compression facilities in the Main Pass area and will include a 6-mile condensate line from Main Pass to an existing Shell Oil Company oil pipeline. A 28-mile oil gathering pipeline from Viosca Knoll 826 to the Shell Cobia cobia Swift-moving, slim marine game fish (Rachycentron canadum), the only member of the family Rachycentridae. Found in most warm oceans, this voracious predator may grow as long as 6 ft (1.8 m) and weigh 150 lbs (70 kg) or more. pipeline at Main Pass 289 is also part of the project. The diameter of the oil pipeline will depend on the number of producers interested in using the new system. Centana will operate the natural gas and condensate lines and CNG Energy Services will operate the oil pipeline. The gas and condensate lines are scheduled to be in service the first quarter of 1996. The oil pipeline is scheduled for fourth-quarter 1996 service. Among the producers committed to the project is CNG Producing Company, which like CNG Energy Services, is a subsidiary of Consolidated Natural Gas Company (CNG). CNG Producing owns several leases and operates production platforms in the Main Pass area and is a partner with Oryx oryx (ôr`ĭks), name for several small, horselike antelopes, genus Oryx, found in deserts and arid scrublands of Africa and Arabia. They feed on grasses and scrub and can go without water for long periods. Energy Company in Neptune, a deep-water production project in Viosca Knoll. "This partnership combines CNG's reserves and production experience in the Gulf of Mexico with Centana's offshore gathering system design and operation experience," Gifford said. "Technology and experience will be particularly important as the oil and gas gathering systems are extended to production areas in deeper waters." CNG Energy Services, based in Pittsburgh, markets a variety of natural gas, electric and other energy products and services throughout North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Consolidated Natural Gas Company is one of the nation's largest producers, transporters, distributors and marketers of natural gas. Centana is a subsidiary of Panhandle Eastern Corporation (NYSE NYSE See: New York Stock Exchange :PEL), which operates one of the nation's largest interstate natural gas pipeline networks, delivering gas primarily to Northeast and Midwest markets. Through its Associated Natural Gas subsidiary, Panhandle is a leading marketer of natural gas and related energy services from coast to coast, as well as in Canada and the United Kingdom. CONTACT: Panhandle Eastern Corp. Media Relations -- John P. Barnett, 713/627-4072 or Investor Relations Investor relations The process by which the corporation communicates with its investors. -- Gregg E. McBride, 713/627-4600 or 800/347-3636 or CNG Energy Services Dan Donovan
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