The Williams Companies, Inc. WMB recently signed a tieback agreement with LLOG Exploration Offshore LLC to deliver offshore natural gas, and oil gathering and production-handling services for the Taggart development at its Devils Tower spar. The company will also oversee onshore gas treatment and processing services at its Devils Tower platform, located 140 miles southeast of New Orleans in the Mississippi Canyon area of the Gulf of Mexico to aid the Taggart development.
This Oklahoma-based energy player is expected to collect crude and natural gas produced at Taggart through its Mountaineer and Canyon Chief pipeline systems. The natural gas output will be shipped to Williams’ Mobile Bay processing plant, and at the same time, natural gas liquids will be fractionated and marketed at the Baton Rouge Fractionator in Louisiana. Taggart development is likely to be completed in the first half of 2022. The reserves contained in Taggart are estimated to produce approximately 27 million barrels through an eight-year time span.
Last month, Williams was awarded a contract to transport natural gas from the Anchor project in the Gulf of Mexico. While Chevron CVX is the chief operator of the project with 62.86% working interest, its co-owner TOTAL TOT holds 37.14% stake. Sanctioned in December 2019, the Anchor project is the industry’s first deepwater high-pressure development endeavor to achieve a final investment decision with an initial development cost of $5.7 billion. The project is scheduled to come online in 2024.
Chevron is expected to drill seven wells and build a semi-submersible floating production unit to access the resource opportunities in the Anchor project. Williams will move Anchor’s natural gas to the Discovery system that it jointly owns with DCP Midstream Partners LP DCP. The rich 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.
Williams’ Gulf of Mexico portfolio includes a 3,500-mile long natural gas and oil gathering and transmission pipeline with a cryogenic processing capacity worth 1.8 billion cubic feet per day (Bcf/d) and 60,000 barrels per day of fractionation capacity. It also owns two floating production platforms, multiple fixed leg utility platforms and various other related facilities.
The Williams Companies, Inc. Price
The Williams Companies, Inc. price | The Williams Companies, Inc. Quote
Founded in 1908, Williams is a premier energy infrastructure provider in North America. The company’s core operations include finding, producing, gathering, processing and transporting natural gas and natural gas liquids. Boasting a widespread pipeline system that stretches beyond 33,000 miles, Williams is one of the largest domestic transporters of natural gas in terms of volume.
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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