Williams to Buy Marcellus Area Gas System
Tuesday, March 20, 2012
Williams Partners has agreed to buy Caiman Energy’s wholly owned subsidiary, Caiman Eastern Midstream LLC, for US$2.5 billion, giving Williams Partners a foothold in the natural gas liquids-rich portion of the Marcellus Shale.
Caiman Eastern Midstream is an independent gathering and processing business operating in northern West Virginia, southwestern Pennsylvania and eastern Ohio. Caiman’s assets include a gathering system, two processing facilities and a fractionator. All are being expanded and an ethane pipeline is planned.
Williams Partners said an estimated 300 Tcf (8.5 x 1012 m3) of gas is in place within a 35 mi. (56 km) radius of the system. It expects the Caiman system to gather more than 2 Bcfd (56 x 106 m3/d) and produce 300,000 bbl/d of liquids and condensate by 2020.
The partnership also said it will enter a joint venture with Caiman Energy to develop midstream pipeline infrastructure in the Utica Shale of eastern Ohio and northwestern Pennsylvania.
Williams Co. owns 72% of Williams Partners, including the general-partner interest. Caiman Energy is backed by private equity investors including EnCap Flatrock Midstream, EnCap Investments L.P. and Highstar Capital.
For more information: www.williamslp.com