Williams Partners to buy Canadian assets from Williams for $1.2 billion

Williams Partners LP, Tulsa, has agreed to acquire Williams Cos. Inc.’s Alberta operations for $1.2 billion. The transaction is expected to close Feb. 28. Williams currently owns 64% of Williams Partners, including general partner interest.

The assets include an oil sands offgas processing plant near Fort McMurray, 260 miles of NGL and olefins pipelines, and an NGL-olefins fractionation facility and butylene-butane splitter facility at Redwater.

Williams Partners also will buy an in-progress Redwater facility expansion project, which provides additional fractionation business to Williams Partners related to development of offgas processing at the CNRL Horizon upgrader facility retained by Williams.

Williams Partners said operating results from the assets are expected to contribute distributable cash flow to the company of $135-160 million during the remainder of the year and $200-240 million next year.

Williams Partners owns most of Williams’ interstate gas pipeline and domestic midstream assets. Williams also owns Canadian operations and certain US olefins pipelines assets, as well as an investment in Access Midstream Partners LP, a midstream natural gas services provider.

Williams Partners in 2012 purchased 83% undivided interest owned by Williams in its Geismar, La., olefins production plant. Williams Partners also paid more than $2.2 billion for Williams’ refinery-grade propylene splitter and $100 million for pipelines along the Gulf Coast (OGJ Online, Nov. 5, 2012).

Six years earlier, Williams Partners acquired 25.1% interest in Williams’ Four Corners LLC subsidiary, an integrated gas gathering and processing system, for $360 million (OGJ Online, Apr. 10, 2006).

In 2002, Williams Partners bought Williams Pipe Line Co.—then-6,747 miles of pipeline delivering petroleum products to 11 Midwestern states—from Williams for $900 million (OGJ Online, Mar. 21, 2002).

Related Articles

EIA: Marcellus gas production continues to outpace takeaway capacity

04/25/2014 Rising production of natural gas in the Marcellus shale play in the Appalachian basin continues to outpace the growth in the region’s pipeline take...

MARKET WATCH: Brent crude prices top $110/bbl on geopolitical tensions

04/25/2014 In London, ICE Brent crude oil prices moved up this week, topping $110/bbl on Apr. 24 “amid rising geopolitical tensions between Russia and Ukraine...

EIA: Companies’ global upstream spending flat in 2013

04/25/2014 According to annual reports from 42 international oil and natural gas companies that have reported data on upstream expenditures since 2000, total ...

Voters ready to respond to Keystone XL delays, API-sponsored poll finds

04/24/2014 Candidates’ stances on whether to complete the proposed Keystone XL crude oil pipeline and other energy issues potentially could affect midterm con...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected