Williams Partners LP has agreed to provide natural gas processing, fractionation, and liquids handling services in Southwestern Energy Co.’s wet gas acreage in the Marcellus and Upper Devonian shale along with gas gathering services in the Houston operator’s South Utica dry gas acreage.
Williams will provide Southwestern with 660 MMcfd of processing capacity to serve a 135,000-acre dedication in Southwestern’s wet gas acreage in the Marcellus and Upper Devonian shale in Marshall and Wetzel counties of West Virginia.
Due to the agreement, Williams expects to further build out its Oak Grove gas processing facility for Southwestern’s expanding production of wet gas. The facility can be expanded by as much as 1.8 bcfd.
Williams’ Northeast gathering and processing operating area also received a gathering dedication of Southwestern’s South Utica dry gas acreage comprising 71,500 acres in Marshall and Wetzel counties in West Virginia. The gathering and processing expansions will be supported by long-term, fee-based agreements and volumetric commitments.
Williams says downstream gas connections into TransCanada Corp.’s proposed 160-mile, 1.5-bcfd Leach Xpress project and proposed 165-mile, 2.7-bcfd Mountaineer Xpress project are being established to boost market access and diversify gas pricing opportunities.