Offshore drilling rig in the Gulf of Mexico. (Source: Shutterstock)
Wlliams and Chevron U.S.A. Inc. have committed to several agreements with each other in support of natural gas development in the Haynesville Basin and in the deepwater Gulf of Mexico, Williams announced in a Feb. 17 press release.
In the Haynesville basin, Williams will supply natural gas gathering services and construct a greenfield gathering system for Chevron’s 26,000-acre dedication, which will connect to Williams’ Louisiana Energy Gateway (LEG) project. Chevron has agreed to a long-term capacity commitment to the project.
Expected to go into service in 2024, LEG will gather natural gas from the Haynesville for delivery to the Transco pipeline, industrial markets and LNG export demand in the Gulf Coast. LEG is part of Williams’ low carbon wellhead to water strategy and is positioned for carbon capture and storage to decarbonize natural gas production in the Haynesville.
In the Gulf of Mexico, Williams will use existing infrastructure in support of increasing production at the Blind Faith platform, which is 160 miles southeast of New Orleans, Louisiana. Chevron is currently developing the Ballymore tieback to the platform to connect the Blind Faith platform’s three production wells via one flowline for a design capacity of 75,000 bbl/d of crude oil. Williams will also provide offshore natural gas gathering and crude oil transportation services and onshore production natural gas processing services.
Chevron is the operator of the Ballymore project with 60% working interest and TotalEnergies E&P U.S.A. Inc. has 40% working interest.
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“This is a great example of Williams and Chevron working together to accelerate the development and delivery of natural gas to supply affordable, reliable, ever cleaner energy both here in the United States and overseas,” said Alan Armstrong, president and CEO of Williams. “We are proud to take another step in advancing the output potential of two of the most prolific production areas in North America.”
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