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Released August 06, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Williams Companies (NYSE:WMB) (Tulsa, Oklahoma) is on track to spend between $1 billion and $1.2 billion on capital items this year, and expects capital expenditures to be on par with that level in 2022, as it pushes ahead with key offshore and onshore pipeline projects. Williams announced this week it reached an agreement to provide offshore natural gas gathering and crude oil transportation services for the offshore Whale development in the Gulf of Mexico.
Williams said Wednesday it also will provide onshore natural gas processing services for the Whale development as part of its agreement with Shell Offshore Incorporated, a subsidiary of Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands), and Chevron U.S.A., a unit of Chevron Corporation (NYSE:CVX) (San Ramon, California).
Shell announced on July 26 it had reached a final investment decision (FID) on the Whale development. Located about 200 miles southwest of Houston, Texas, the development is expected to reach peak production of about 100,000 barrels of oil equivalent per day and has an estimated, recoverable resource volume of 490 million barrels of oil equivalent. The Whale project is expected to begin production in 2024.
Williams said it plans to expand its existing Gulf of Mexico offshore infrastructure via a 25-mile gas lateral pipeline from the Whale platform to the existing Perdido gas pipeline and a new 125-mile oil pipeline to the existing Williams-owned GA-A244 junction platform. The natural gas will be transported to Williams' Markham gas processing plant in Matagorda, Texas.
Williams already has received permitting for the new pipeline that will serve the Whale development and has purchased the deepwater pipe for the project.
During Williams' second-quarter earnings conference call with industry analysts earlier this week, Chief Executive Officer Alan Armstrong said the company is "well into that project at this point....As you know, we had a reimbursable agreement with Shell, so we're well into the details of engineering."
Industrial Info is tracking four projects tied to Shell's Whale Offshore Oil Development. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can click here for a list of detailed reports.
Industrial Info is tracking nearly $4.5 billion worth of active capital projects by Williams Companies, including $3.5 billion that are assessed as having a medium probability (70% to 80%) or a high probability (81% to 99%) of moving forward as planned.
Click on the image at right for a graph showing Williams Companies' capital project activity by U.S. market region.
Williams also has an export agreement to provide offshore natural gas gathering and transportation services and onshore natural gas processing services to the Shenandoah development, which is located 160 miles off the coast of Louisiana.
Williams will install a five-mile offshore lateral pipeline from the Shenandoah platform to the Discovery natural gas gathering pipeline system's Keathley Canyon Connector pipeline, and additional onshore processing facilities. The 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. The export agreement was reached with Beacon Offshore Energy Development LLC (Houston) and ShenHai LLC, a subsidiary of Navitas Petroleum (Israel).
Industrial Info is tracking four projects tied to the Shenandoah Deepwater Development. Subscribers can click here for a list of detailed reports.
Armstrong said Williams is expected to spend "just south of $0.5 billion" on the two offshore items.
Williams executives also outlined some of the company's onshore capital growth projects during the earnings conference call.
Armstrong said work on the Leidy South natural gas pipeline expansion in the northeast U.S. will wrap up in the coming months. The project will connect natural gas supplies in northern and western Pennsylvania to demand centers along the Atlantic Seaboard in time for the 2021-2022 winter heating season. The project already brought 125 million cubic feet per day of capacity on line in November 2020, with the remaining 457 million cubic feet per day expected to be completed this year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can click here for related project reports.
"And then as we get into next year, hopefully, we'll start spending towards the end of the year on Regional Energy Access," Armstrong said. "If we're fortunate on the permitting process, most of that spending will be in '23."
The Regional Energy Access project consists of about 36.1 miles of pipeline in Pennsylvania, installed as loops parallel to the existing Transco pipeline system, in addition to a new compressor station in Gloucester County, New Jersey, and modifications to existing compressor facilities. The project will help ease supply constraints affecting customers in Pennsylvania, New Jersey and Maryland, according to Williams, and will provide up to 760 million cubic feet per day of natural gas transportation on the Transco system.
Chief Operating Officer Micheal Dunn noted the company filed for project certification with the Federal Energy Regulatory Commission (FERC) in March, with plans to put the project into service in fourth-quarter 2023.
Chad Zamarin, senior vice president, Corporate Strategic Development, added, "We permitted our Regional Energy Access project in a way that we've defined as compatible with hydrogen blending. "
Subscribers can click here for related Regional Energy Access project reports.
Williams reported net income of $304 million for the second quarter this year, compared with $303 million in second-quarter 2020.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
Williams said Wednesday it also will provide onshore natural gas processing services for the Whale development as part of its agreement with Shell Offshore Incorporated, a subsidiary of Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands), and Chevron U.S.A., a unit of Chevron Corporation (NYSE:CVX) (San Ramon, California).
Shell announced on July 26 it had reached a final investment decision (FID) on the Whale development. Located about 200 miles southwest of Houston, Texas, the development is expected to reach peak production of about 100,000 barrels of oil equivalent per day and has an estimated, recoverable resource volume of 490 million barrels of oil equivalent. The Whale project is expected to begin production in 2024.
Williams said it plans to expand its existing Gulf of Mexico offshore infrastructure via a 25-mile gas lateral pipeline from the Whale platform to the existing Perdido gas pipeline and a new 125-mile oil pipeline to the existing Williams-owned GA-A244 junction platform. The natural gas will be transported to Williams' Markham gas processing plant in Matagorda, Texas.
Williams already has received permitting for the new pipeline that will serve the Whale development and has purchased the deepwater pipe for the project.
During Williams' second-quarter earnings conference call with industry analysts earlier this week, Chief Executive Officer Alan Armstrong said the company is "well into that project at this point....As you know, we had a reimbursable agreement with Shell, so we're well into the details of engineering."
Industrial Info is tracking four projects tied to Shell's Whale Offshore Oil Development. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can click here for a list of detailed reports.
Industrial Info is tracking nearly $4.5 billion worth of active capital projects by Williams Companies, including $3.5 billion that are assessed as having a medium probability (70% to 80%) or a high probability (81% to 99%) of moving forward as planned.
Williams also has an export agreement to provide offshore natural gas gathering and transportation services and onshore natural gas processing services to the Shenandoah development, which is located 160 miles off the coast of Louisiana.
Williams will install a five-mile offshore lateral pipeline from the Shenandoah platform to the Discovery natural gas gathering pipeline system's Keathley Canyon Connector pipeline, and additional onshore processing facilities. The 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. The export agreement was reached with Beacon Offshore Energy Development LLC (Houston) and ShenHai LLC, a subsidiary of Navitas Petroleum (Israel).
Industrial Info is tracking four projects tied to the Shenandoah Deepwater Development. Subscribers can click here for a list of detailed reports.
Armstrong said Williams is expected to spend "just south of $0.5 billion" on the two offshore items.
Williams executives also outlined some of the company's onshore capital growth projects during the earnings conference call.
Armstrong said work on the Leidy South natural gas pipeline expansion in the northeast U.S. will wrap up in the coming months. The project will connect natural gas supplies in northern and western Pennsylvania to demand centers along the Atlantic Seaboard in time for the 2021-2022 winter heating season. The project already brought 125 million cubic feet per day of capacity on line in November 2020, with the remaining 457 million cubic feet per day expected to be completed this year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can click here for related project reports.
"And then as we get into next year, hopefully, we'll start spending towards the end of the year on Regional Energy Access," Armstrong said. "If we're fortunate on the permitting process, most of that spending will be in '23."
The Regional Energy Access project consists of about 36.1 miles of pipeline in Pennsylvania, installed as loops parallel to the existing Transco pipeline system, in addition to a new compressor station in Gloucester County, New Jersey, and modifications to existing compressor facilities. The project will help ease supply constraints affecting customers in Pennsylvania, New Jersey and Maryland, according to Williams, and will provide up to 760 million cubic feet per day of natural gas transportation on the Transco system.
Chief Operating Officer Micheal Dunn noted the company filed for project certification with the Federal Energy Regulatory Commission (FERC) in March, with plans to put the project into service in fourth-quarter 2023.
Chad Zamarin, senior vice president, Corporate Strategic Development, added, "We permitted our Regional Energy Access project in a way that we've defined as compatible with hydrogen blending. "
Subscribers can click here for related Regional Energy Access project reports.
Williams reported net income of $304 million for the second quarter this year, compared with $303 million in second-quarter 2020.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
