Williams, Caiman Energy II JV To Develop Utica Shale Infrastructure

September 2012, Vol. 239 No. 9

Williams Partners L.P. will be a funding partner in a joint venture with Caiman Energy II to develop midstream infrastructure serving oil and gas producers in the Utica Shale.

Williams Partners, EnCap Flatrock Midstream of San Antonio, Highstar Capital of New York, and Caiman management anticipate investing $800 million to develop natural gas, natural gas liquid and crude oil gathering and processing infrastructure. The area of focus will be the natural gas liquid- and oil-rich areas of the Utica Shale in Ohio and northwest Pennsylvania. Williams Partners’ anticipated share of the $800 million in potential development is $380 million over the next several years.

The Utica Shale joint venture will also benefit from close proximity to Williams Partners’ new Ohio Valley Midstream business. The Ohio Valley Midstream area of operation is northern West Virginia, southwestern Pennsylvania and eastern Ohio. Work is under way to expand existing physical assets, which include a gathering system and a processing facility. In addition, construction is under way on fractionation and additional processing facilities and there are plans to construct NGL pipelines.

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