Big future plans for Williams
BY ROD WALTON World Staff Writer
Thursday, December 20, 2012
Williams Partners and Williams Cos. Inc. are revealing big future plans as 2012 comes to a close.
The Tulsa-based natural gas and natural gas liquids midstream infrastructure has announced major joint ventures and growth projects totaling more than $5 billion this year. The moves connects both Williams firm deeply into the growing production regions of the U.S. including the Bakken, Marcellus and Utica shales.
The latest detail came Thursday, when Williams Partners updated investors on its 47.5-percent stake in Caiman Energy II, a joint venture to provide gas processing and pipeline options for producers in the Utica Shale of the eastern U.S. The partnership plans to contribute $380 million to help fund the new Blue Race Midstream venture with Caiman Energy II.
“Through our interest in Caiman Energy II, Blue Racer Midstream gives us additional exposure to the Utica Shale, which is one of the fastest growing resource plays in North America,” Alan Armstrong, CEO over both Williams and Williams Partners, said in a statemment released Thursday. “We believe this venture has all the elements to be highly successful in delivering timely, safe and reliable midstream services to producers in this fast-growing area.”
Williams Cos. Inc. owns 70 percent of Williams Partners, including the general partner interest.
Last week, the parent Williams announced its own $2.4 billion acquisition of stakes in Access Midstream Partners LP and its general-partner holding interest. The move solidified Williams’ position in various U.S. shale plays, as well as the Mississippi Lime and Granite Wash production regions in Oklahoma.
Oklahoma City-based Access’ pipeline and processing assets were formally owned by and spun off from Chesapeake Energy Corp.