Chevron has also agreed to a long-term capacity commitment on Williams’ Louisiana Energy Gateway project, which will gather the produced natural gas from the Haynesville basin
Williams and Chevron U.S.A. have signed agreements to underpin the latter’s natural gas development in the Haynesville basin and the deepwater Gulf of Mexico (GoM) in the US.
Under the agreements, the Oklahoma-based Williams will offer natural gas gathering services to the 26,000-acre Haynesville acreage of Chevron. The latter, on its part, has agreed to a long-term capacity commitment on Williams’ Louisiana Energy Gateway (LEG) project.
As part of the Haynesville Basin agreement, Williams intends to develop a greenfield gathering system. This will be for supporting Chevron’s acreage dedication with connectivity to the Louisiana Energy Gateway project, which is expected to begin operations in 2024.
According to Williams, the Louisiana Energy Gateway project will collect natural gas produced in the Haynesville basin, which will be delivered to Transco and industrial markets apart from meeting the increasing LNG export demand along the Gulf Coast.
In addition, Williams will utilise existing infrastructure to serve increased production from Chevron’s Blind Faith platform in the Gulf of Mexico, located 257.5km southeast of New Orleans.
Production at the Blind Faith platform will be increased by 75,000 barrels of crude oil per day, following the completion of the Ballymore tieback, which was sanctioned by Chevron last May.
The $1.6bn Ballymore development project will see the tieback of three production wells to the nearby Blind Faith platform through a flowline.
By leveraging existing connections to the Blind Faith facility, Williams will offer subsea natural gas gathering and crude oil transportation services and onshore natural gas processing services for the production.
Williams president and CEO Alan Armstrong said: “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.
“We are proud to take another step in advancing the output potential of two of the most prolific production areas in North America.”