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Williams to buy gathering system in Marcellus shale
Williams Partners LP, Tulsa, reported it will acquire the Laser Northeast Gathering System and other midstream businesses from Delphi Midstream Partners LLC, a unit of American Securities LLC, and management, for about $750 million.
The Laser gathering system currently consists 33 miles of 16-in. natural gas pipeline and associated gathering in Susquehanna County, Pa., as well as 10 miles of gathering pipeline in southern New York.
The acquisition is supported, said the announcement, by existing long-term gathering agreements that "provide acreage dedications and volume commitments." As production in the Marcellus increases, the company expects the Laser system to reach a capacity of 1.3 bcfd.
Williams Partners will fund the purchase with a combination of $300 million cash and about 7.5 million common units of Williams Partners, the announcement said. The acquisition is subject to customary regulatory filings and approvals.
WGP to buy Anadarko midstream assets
Western Gas Partners LP, Houston, reported it will buy the Red Desert complex and related assets, primarily in the greater Green River basin of southwestern Wyoming, from Anadarko Petroleum Corp. for $483 million.
Under the agreement, WGP will buy Anadarko's 100% ownership interest in Mountain Gas Resources LLC, which owns the Red Desert complex, a 22% interest in Rendezvous Gas Services LLC, and related facilities.
Red Desert, which represents more than 90% of MGR's cash flow, includes the 125 MMcfd Patrick Draw processing plant, the 48 MMcfd Red Desert processing plant, 1,295 miles of gathering lines, and related facilities.
Rendezvous owns a 338-mile mainline gathering system serving Jonah and Pinedale Anticline fields in southwestern Wyoming that deliver gas to WGP's Granger complex and other locations. WGP's announcement said Red Desert and Rendezvous are together expected to generate more than 98% of MGR's operating cash flows.
WGP expects the transaction to close in January, with an effective date of Jan. 1.
