Williams, Brazos Form Joint Venture
16 November 2018
Williams and Brazos Midstream have formed a joint venture in the Delaware Basin. Per the agreement, Williams will contribute its existing Delaware Basin assets in exchange for a 15% minority position in the joint venture. Williams’ assets, in turn, will help expand Brazos’ footprint and give both companies’ customers a combined suite of services.
Brazos, with an 85% stake in the joint venture, will operate 725 miles (1167 km) of gas gathering pipelines, 260 MMcfd (7.3 X 106 m3/d) of natural gas processing, 75 miles (121 km) of crude oil gathering pipelines and 75,000 barrels of oil storage, located across Reeves, Loving, Ward, Winkler, Pecos and Culberson counties in Texas.
Additionally, Brazos is constructing its previously announced 200 MMcfd (5.6 X 106 m3/d) Comanche III natural gas processing plant, which will be operational in the first quarter of 2019. This plant, combined with the joint venture assets, will bring both companies’ processing capacity in the Delaware Basin to 460 MMcfd (13 X 106 m3/d).
Support for the joint venture comes in the form of more than 500,000 acres (202,343 ha) of long-term dedications under full-field horizontal development from several oil and gas producers. The joint venture also will develop natural gas residue solutions to benefit Delaware Basin producers.