Williams has signed a long-term gas processing agreement with a producer in the Canadian oil sands.
Williams will extract, transport, fractionate, own and market the natural gas liquids and olefins recovered from the offgas at the oil sands producer’s upgrader near Fort McMurray, Alberta. The NGL/olefins recovered are expected to be 12,000 bpd by mid-2015, rising to 15,000 bpd by 2018.
Williams plans to build a liquids extraction plant and supporting facilities at the oil sands producer’s upgrader. It will build an extension of its Boreal Pipeline to transport the NGL/olefins mixture to its expanded Redwater facility near Edmonton. The total capital expenditure is CA$500-600 million.