Tulsa-based Williams reached an agreement with Shell Offshore Inc. and Chevron U.S.A. Inc. to provide offshore natural gas gathering and crude oil transportation services as well as onshore natural gas processing services for the Whale development located approximately 10 miles from the Shell-operated Perdido host facility, according to a company press release.
Williams plans to expand its existing Gulf of Mexico offshore infrastructure via a 25-mile gas lateral pipeline build from the Whale platform to the existing Perdido gas pipeline and a new 125-mile oil pipeline to the existing Williams-owned GA-A244 junction platform. The natural gas will be transported to Williams’ Markham gas processing plant located in Matagorda, TX. First production is expected to come online in 2024.
“Our asset synergies in the Gulf of Mexico are second to none, and we are pleased to strengthen our existing onshore and offshore infrastructure to further serve the growing needs of deepwater producers,” said Micheal Dunn, chief operating officer at Williams. “The development of Whale expands Williams’ footprint in the Gulf by contracting one of the largest discoveries in the past decade and creating future connection opportunities for producers that will capture the full value of these important deepwater resources.”
Williams owns and operates 3,500 miles of natural gas and oil gathering and transmission pipeline, along with 1.8 billion cubic feet per day of cryogenic processing capacity and 60,000 barrels per day of fractionation capacity that span the Gulf of Mexico. The company has ownership in two floating production platforms, multiple fixed leg utility platforms and numerous other related facilities.