Tulsa-based Williams announced Wednesday that it recently reached an export agreement to provide offshore natural gas gathering and transportation services to the Shenandoah development in the central Gulf of Mexico.
The agreement is with Beacon Offshore Energy Development LLC and its co-owner ShenHai, LLC, a subsidiary of Navitas Petroleum. It includes offshore and onshore services through the Discovery infrastructure in the Gulf.
Shenandoah is located 160 miles off the coast of Louisiana in the Walker Ridge area of the Gulf of Mexico.
“Our interconnected offshore and onshore infrastructure allows us to maximize value for our customers by providing a safe, seamless and direct path to market for deepwater producers in the Gulf,” said Micheal Dunn, Chief Operating Officer for Williams. “Our investment in Shenandoah is a strategic expansion of our Gulf of Mexico infrastructure which further strengthens our portfolio of services.”
Facilities to be installed include a five-mile offshore lateral pipeline build from the Shenandoah platform to Discovery’s existing Keathley Canyon Connector pipeline, and additional onshore processing facilities to handle the expected rich Shenandoah production.
The new, rich natural gas will be transported to Discovery’s processing plant in Larose, Louisiana, and the natural gas liquids will be fractionated and marketed at Discovery’s Paradis plant in Louisiana.
Shenandoah is expected to come online as early as late 2024.
Williams owns and operates 3,500 miles of natural gas and oil gathering and transmission pipeline, along with 1.8 BCF/d of cryogenic processing capacity and 60,000 barrels per day of fractionation capacity serving the Gulf of Mexico. The company has ownership in two floating production platforms, multiple fixed leg utility platforms, and numerous other related facilities.
