Oklahoma pipeline operator Williams has landed a deal to haul natural gas from an offshore project being developed by Chevron and French oil major Total in the Gulf of Mexico.
Financial terms were not disclosed but under the deal, Williams will develop an underwater pipeline to move the natural gas from Chevron and Total’s deepwater Anchor project about 140 miles off the coast of Louisiana.
Williams Cos. said it is in an agreement with Chevron Corp. and Total E&P USA Inc. to provide offshore natural gas transportation services to the Anchor development.
Anchor is located 140 miles off the coast of Louisiana in the Green Canyon area of the Gulf of Mexico.
Williams said Chevron plans to drill multiple wells and construct a floating production platform capable of handling the new rich natural gas and oil production from the Anchor development.
Williams will transport Anchor’s natural gas production to the Discovery system, of which Williams is 60% owner and operator. The new rich natural gas will be transported to Discovery’s processing plant in Larose, La., and the natural gas liquids will be fractionated and marketed at Discovery’s Paradis plant in Louisiana.
Anchor is expected to come online in the first half of 2024, Williams said.
Chevron in December said it sanctioned the Anchor project in the U.S. Gulf of Mexico. Chevron said it holds a 62.86% working interest in the Anchor project and Total E&P USA holds 37.14% working interest.
Source: Houston Chronicle/Market Screener