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 Williams Partners common units, said the announcement. The acquisition is subject to customary regulatory filings and approvals.