Natural gas processing and transportation firm Williams and has signed agreements with Chevron USA to support natural gas development in the Haynesville basin, as well as in the deepwater Gulf of Mexico (GoM).
Under the deals, Williams will offer natural gas gathering services to the Chevron-owned 26,000-acre field in the Haynesville basin, which covers parts of Texas, Arkansas, and Louisiana.
Chevron has agreed to a long-term capacity commitment for Williams’ Louisiana Energy Gateway (LEG) project, which will collect natural gas produced from the Haynesville shale basin.
Scheduled to be commissioned in late 2024, the LEG project will have the capacity to transfer 1.8 billion cubic feet per day (bcfd) of gas to various clients in the Gulf Coast markets.
Furthermore, Williams will use existing infrastructure to support increased production from Chevron’s Blind Faith platform in the Gulf of Mexico.
Production at the Blind Faith platform is planned to be increased by 75,000 barrels of crude oil per day, following the completion of the Ballymore tieback by Chevron.
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Williams will leverage existing connections to the Blind Faith facility to 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.”