Important Anchor transportation deal struck

Williams has reached an agreement with the proponents of the Anchor field to provide offshore natural gas transportation services.

The deepwater Anchor oil and gas field is located approximately 225 km offshore Louisiana in the US Gulf of Mexico. Operated by Chevron with a 62.86 per cent share and assistance from joint venture (JV) partner and remaining stake holder Total E&P, the project has an estimated recoverable resource of more than 440 million bbl.

The field was first discovered in 2014 and appraisal drilling began in 2015 when significant hydrocarbon reserves were encountered. The field sits in a water depth of around 1,500 m and several prospects have been identified in the region.

Chevron has been steadily progressing Anchor’s development in the last few years, engaging Wood Group to complete the preliminary front-end engineering and design (pre-FEED) and FEED work, with the project to use a semisubmersible floating production unit with a capacity of 75,000 bbl of oil and nearly 800,000 m3 of gas per day.

Anchoring the deal

In May 2020, Williams announced it had reached an agreement with the JV to provide offshore natural gas transportation services to Anchor. The company is headquartered in Tulsa, Oklahoma and is one of the largest natural gas gatherers and processors in North America, owning and operating onshore and offshore assets in Alabama, Louisiana, Mississippi and Texas.

Williams will leverage its existing footprint and system capabilities to transport Anchor’s natural gas production to the Discovery system, of which Williams is 60 per cent owner and operator, while DCP Midstream Partners owns the remaining 40 per cent share.

Williams says new 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.

Williams Chief Operating Officer Micheal Dunn says the company’s presence in the region made it a good fit for this project.

“We are extremely well-positioned in the Gulf of Mexico, with asset synergies that are second to none in this active region, and we’re pleased to leverage and expand our existing infrastructure to serve the growing needs of deep-water producers,” he says.

“Discovery offers producers the full suite of midstream natural gas services to maximise value for its customers, who partner with Williams to help them complete their value chain by safely gathering, processing and delivering the energy that fuels our nation and drives a clean energy economy.”

Anchor is expected to come online in the first half of 2024.

This article was featured in the July 2020 edition of Pipelines International. To view the magazine on your PC, Mac, tablet or mobile device, click here.

For more information visit the Williams website.

If you have news you would like featured in Pipelines International contact Journalist Sophie Venz at svenz@gs-press.com.au

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