Offshore Construction For $50-Million Pipeline Goes To J. Ray McDermott

Houston Pipe Line Company and Valley Pipe Lines, Inc., Offshore Division, both subsidiaries of Houston Natural Gas Corporation (HNG), have announced plans to construct a 92-mile, 20- inch gas pipeline in state waters off Padre Island, Texas. When completed, the pipeline will be the longest offshore intrastate pipeline in the nation, with a design capacity of 400 million cubic feet per day.

C o n s t r u c t i o n of the pipeline from state block 1064-L in the Gulf of Mexico off Port Mansfield to an existing Houston Pipe Line Company facility at Chapman Ranch southwest of Corpus Christi is expected to begin August 1. Completion is anticipated in April 1981. The line, which will parallel the coast of approximately 68 miles before moving inland in Nueces County, will serve two platforms currently under construction. The platforms will be operated by McMoRan Exploration Company. Contracts for the purchase of gas have been signed with McMoRan and Warren-King Oil Company, and commitments with the remaining owner interests are expected in the future.

J. Ray McDermott Company, Inc. has been awarded the offshore construction contract. Contracts for the two other phases of construction, on land and across the Laguna Madre, have yet to be awarded.

More than 485,000 feet of pipe, including approximately 360,000 feet for the offshore portion, will be used to complete the project. Total cost of the pipeline is expected to be more than $50 million.

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