Williams to Expand Deepwater GOM Infrastructure

Beacon Offshore Energy Development LLC and Navitas Petroleum (TLV: NVPT.L) unit ShenHai, LLC have reached a deepwater Gulf of Mexico (GOM) export agreement with Williams (NYSE: WMB) for the Shenandoah field development, Williams reported Wednesday.

Under the deal, Williams will provide offshore natural gas gathering and transportation services and onshore natural gas processing services to Shenandoah through its Discovery infrastructure in the central GOM, the company noted in a written statement. It pointed out that Shenandoah is located 160 miles (257 kilometers) offshore Louisiana in the Walker Ridge GOM area.

“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,” commented Williams Chief Operating Officer Micheal Dunn.

Given the agreement, Williams stated that new facilities to be installed include:

• a five-mile (eight-kilometer) offshore lateral pipeline from the Shenandoah platform to Discovery’s existing Keathley Canyon Connector pipeline
• additional onshore processing facilities to handle the expected rich Shenandoah production.

Williams added the new, rich natural gas from Shenandoah will be shipped to Discovery’s processing plant in Larose, La., and the natural gas liquids fractionated and marketed at Discovery’s Paradis, La., plant. The company noted that Shenandoah could go online as soon as late 2024.

“Our investment in Shenandoah is a strategic expansion of our Gulf of Mexico infrastructure which further strengthens our portfolio of services,” continued Dunn. “We are pleased to provide the entire spectrum of midstream capabilities to Beacon that will capture the full value of these important deepwater resources.”

Last week Transocean (NYSE: RIG) revealed that it expects Shenandoah drilling operations to start in the third quarter of 2022 with the new Deepwater Atlas drillship.

To contact the author, email mveazey@rigzone.com.