Tulsa-based Williams Partners will increase its ownership in two Marcellus Shale gathering systems, it operates though an agreement with Western Gas Partners and some of its affiliates. In exchange, Western Gas and affiliates will take over 50% ownership in Delaware Basin JV Gathering, which Western Gas already operates.
Under the terms of the transaction, Williams Partners will receive Western Gas’ 33.75% ownership of both the Rome and Liberty natural gas gathering systems in northern Pennsylvania, and a cash payment of $155 million.
When closed, the transaction will increase Williams Partners’ ownership interest to 67.5% percent in both systems and included in Williams Partners’ Bradford Supply Hub in the Northeast G&P segment. Current throughput on the Rome and Liberty gathering systems is about 1.6 Bcf/d.
Separately, Anadarko Petroleum agreed to sell Williams Partners’ 33.33% interest in the Ranch Westex gas processing plant in the Delaware Basin for $45 million in cash.
“The Marcellus area hit a record-gathering volume for us in January and furthermore stands to benefit from the increased takeaway capacity from our Atlantic Sunrise Project,” said Alan Armstrong, CEO of Williams Partners’ general partner.
Williams Partners will continue its presence in the Delaware Basin, serving its gathering and processing customers there through its Williams Partners-operated gathering systems.
The partnership expects to use the aggregate cash consideration that is part of both transactions for general partnership purposes, including funding growth capital. The two transactions are expected to close in late first-quarter or early second-quarter 2017.