Williams Partners funds joint venture to develop pipeline infrastructure
Williams Partners LP announced Tuesday it is funding a joint venture with Caiman Energy II to develop pipeline infrastructure in Ohio's Utica Shale.
TULSA — Williams Partners LP announced Tuesday it is funding a joint venture with Caiman Energy II to develop pipeline infrastructure in Ohio's Utica Shale.
Williams Partners, EnCap Flatrock Midstream of San Antonio, Highstar Capital of New York and Caiman management expect to spend about $800 million to develop natural gas, natural gas liquid and crude oil gathering and processing infrastructure.
Williams Partners will contribute about $380 million over the next several years.
“This new midstream venture can leverage the commercial relationships and success of Caiman's management and investors, along with Williams Partners' long experience in successfully constructing and reliably operating large-scale midstream infrastructure,” CEO Alan Armstrong said.
“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.”
The new Utica Shale joint venture is close to Williams Partners' new Ohio Valley Midstream business, which operates in northern West Virginia, southwestern Pennsylvania and eastern Ohio.
Williams Partners is expanding its existing gathering system and a processing facility there, with construction under way on fractionation and additional processing facilities. The partnership also plans to construct liquids pipelines.