TULSA — Williams Partners has struck a deal with parent company The Williams Cos. Inc. to acquire its stake in a Louisiana production facility and refinery-grade propylene splitter and pipelines in the Gulf region for nearly $2.4 billion.
Williams Partners also will be responsible for completing the ongoing plant expansion and additional pipelines at a cost of about $430 million.
Williams has agreed to temporarily waive its general partner distribution rights of about $16 million per quarter until the plant is operational.
“The addition of the Geismar facility to Williams Partners' portfolio immediately reduces the partnership's exposure to the oversupplied ethane markets by nearly 70 percent and eliminates it by 2014, while increasing our ability to produce globally marketed ethylene,” CEO Alan Armstrong said. “Bringing this natural hedge to Williams Partners makes it unique among similarly situated MLPs. In addition, it provides strong support for our continuing distribution growth.”