Williams (NYSE: WMB) today announced that it has executed agreements with Chevron U.S.A. Inc. to support natural gas development in the prolific Haynesville Basin as well as the deepwater Gulf of Mexico. Williams will provide natural gas gathering services to Chevrons 26,000-acre Haynesville dedication while Chevron has agreed to a long-term capacity commitment on Williams Louisiana Energy Gateway (LEG) project. Additionally, Williams has agreed to use existing infrastructure to serve increased production from the Blind Faith platform, located 160 miles southeast of New Orleans in the Gulf of Mexico.
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, said Alan Armstrong, president and CEO of Williams. We are proud to take another step in advancing the output potential of two of the most prolific production areas in North America.
As part of the Haynesville agreement, Williams plans to construct a greenfield gathering system in support of Chevrons acreage dedication with connectivity to Williams LEG project. The LEG project is designed to gather natural gas produced in the Haynesville basin for delivery to premium markets, including Transco, industrial markets, and growing LNG export demand along the Gulf Coast. LEG, which is expected to go into service in 2024, is a key component of Williams lower carbon, wellhead to water strategy, proving up what an important role natural gas can play in reducing emissions, lowering costs, and providing secure and reliable energy at home and around the world. LEG is ideally positioned to incorporate carbon capture and storage as a further decarbonizing solution for natural gas production in the rapidly growing Haynesville basin.
In the deepwater Gulf of Mexico, Chevron is developing the Ballymore tieback to the Blind Faith platform. The project, which involves three production wells tied back via one flowline to the nearby Blind Faith facility, has a design capacity of 75,000 barrels of crude oil per day. Using existing connections to Blind Faith, Williams will provide offshore natural gas gathering and crude oil transportation services as well as onshore natural gas processing services for the production. Chevron is the operator of the Ballymore project with a 60 percent working interest. Co-owner TotalEnergies E&P USA, Inc. has a 40 percent working interest.