Williams Cos. has reached an export agreement with Beacon Offshore Energy Development LLC and its co-owner ShenHai LLC, a subsidiary of Navitas Petroleum, to provide offshore natural gas gathering and transportation services and onshore natural gas processing services to the Shenandoah development through Discovery infrastructure in the central Gulf of Mexico. Shenandoah is 160 miles off the coast of Louisiana in Walker Ridge Blocks 51, 52, and 53 of the Gulf of Mexico.
The agreement includes installation of a 5-mile offshore lateral pipeline from the Shenandoah platform to Discovery’s existing 400-MMcfd Keathley Canyon Connector pipeline, and additional onshore processing to handle the expected rich Shenandoah production. Gas will be transported to Discovery’s 600-MMcfd processing plant in Larose, La., and NGL will be fractionated and marketed at Discovery’s 32,000-b/d Paradis plant. Discovery is a 60-40 joint venture between Williams and DCP Midstream Partners LP.
Shenandoah is expected to come online as early as late 2024. Beacon will use multiple wells to develop an estimated 100-400 million bbl, targeting previously discovered oil-bearing Upper and Lower Wilcox reservoirs (OGJ Online, Oct. 16, 2019).
Beacon Offshore operates Shenandoah with 47% interest, the balance held by Navitas. Beacon acquired previous-operator LLOG Exploration Co. LLC’s 31% stake in the project in 2020.
