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Williams (WMB) Clinches Deepwater Anchor Transportation Deal

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The Williams Companies, Inc. (WMB - Free Report) has been awarded a contract to transport natural gas from Anchor project in the Gulf of Mexico. While Chevron (CVX - Free Report) is the chief operator of the project with 62.86% working interest, its co-owner TOTAL (TOT - Free Report) holds 37.14% stake. Sanctioned in December 2019, the Anchor project is the industry’s first deepwater high-pressure development to achieve a final investment decision with an initial development cost of $5.7 billion. The field is scheduled to come online in 2024.

Anchor field is located at the Green Canyon block 807, 140 miles offshore Louisiana, in water depths of 1,524 meters. The planned facility has a daily production capacity of up to 75,000 barrels of crude oil and 28 million cubic feet of natural gas. The total potentially recoverable oil-equivalent resources for Anchor are estimated to be more than 440 million barrels.

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 - Free Report) . 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.                

The Discovery system, which is 60% owned and operated by Williams and 40% controlled by DCP, offers a wide range of midstream natural gas services including both natural gas and crude oil gathering pipelines, cryogenic gas processing, liquids handling and crude oil storage. Its assets consist of a gas processing plant worth a capacity of 60 million cubic feet per day (MMcf/d) and a fully-permitted plant of 200 MMcf/d capacity that is under construction. 

William’s Gulf of Mexico portfolio includes a 3,500-mile long natural gas and oil gathering and transmission pipeline, 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. 

About Williams

Founded in 1908, Oklahoma-based 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 by volume.

The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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