TULSA, Okla.--(BUSINESS WIRE)-- Williams Partners L.P. (NYSE:WPZ) today announced it will be a funding partner in a joint venture with Caiman Energy II to develop midstream infrastructure serving oil and gas producers in the Utica Shale.
Williams Partners (WPZ), EnCap Flatrock Midstream of San Antonio, Highstar Capital of New York, and Caiman management anticipate investing approximately $800 million to develop natural gas, natural gas liquid and crude oil gathering and processing infrastructure. The area of focus will be the natural gas liquid- and oil-rich areas of the Utica Shale in Ohio and northwest Pennsylvania. Williams Partners anticipated share of the $800 million in potential development is approximately $380 million over the next several years.
This new midstream venture can leverage the commercial relationships and success of Caimans management and investors, along with Williams Partners long experience in successfully constructing and reliably operating large-scale midstream infrastructure, said Alan Armstrong , chief executive officer of Williams Partners general partner.
Our producer customers will benefit from introducing the kind of comprehensive large-scale midstream solutions to the area that will make their positions in the liquids- and oil-rich Utica Shale even more valuable, Armstrong said.
Jack Lafield, chairman and chief executive officer of Caiman Energy, LLC, made the following comments:
We couldnt be more pleased to work with such a well-respected company. Together with our other equity partners, Williams' financial strength and experience allows Caiman Energy to continue to provide our producer customers with the best possible midstream solutions as they develop drilling locations in this exciting play. We see great opportunities in the Utica Shale and with the successful completion of this equity transaction, we believe we are well-positioned to expand into the Utica and elsewhere.
The new Utica Shale joint venture will also benefit from close proximity to Williams Partners new Ohio Valley Midstream business. The Ohio Valley Midstream area of operation is northern West Virginia, southwestern Pennsylvania and eastern Ohio. Work is under way to expand existing physical assets, which include a gathering system and a processing facility. In addition, construction is underway on fractionation and additional processing facilities and there are plans to construct NGL pipelines.
About Williams Partners L.P.
Williams Partners L.P. is a leading diversified master limited partnership focused on natural gas transportation; gathering, treating, and processing; storage; natural gas liquid (NGL) fractionation; and oil transportation. The partnership owns interests in three major interstate natural gas pipelines that, combined, deliver 14 percent of the natural gas consumed in the United States. The partnerships gathering and processing assets include large-scale operations in the U.S. Rocky Mountains and both onshore and offshore along the Gulf of Mexico. Williams (NYSE: WMB) owns approximately 68 percent of Williams Partners, including the general-partner interest. More information is available at www.williamslp.com.
Portions of this document may constitute forward-looking statements as defined by federal law. Although the partnership believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the safe harbor protections provided under the Private Securities Reform Act of 1995. Additional information about issues that could lead to material changes in performance is contained in the partnerships annual reports filed with the Securities and Exchange Commission.
Williams Partners L.P.
Jeff Pounds, 918-573-3332
John Porter, 918-573-0797
Sharna Reingold, 918-573-2078
Source: Williams Partners L.P.Copyright Business Wire 2012