Williams to acquire Marcellus Shale gas gathering system for $750m

22 December 2011 14:55  [Source: ICIS news]

HOUSTON (ICIS)--Williams has agreed to acquire the Laser gas gathering system in the Marcellus Shale basin for about $750m (€578m), the diversified US energy infrastructure and petrochemicals firm said on Thursday.

Williams is buying the system from Delphi Midstream Partners, which is owned by American Securities, it said.

The Laser system comprises 33 miles of 16-inch natural gas pipeline and associated gathering facilities in Susquehanna county, Pennsylvania, as well as 10 miles of gathering pipeline in southern New York.

As gas production in the Marcellus increases, the Laser system is expected to reach a capacity of 1.3bn cubic feet/day, Williams said.

"The acquisition of the Laser system continues our strategy of safely and reliably serving producers through large-scale midstream infrastructure in the Marcellus Shale and other basins," said Rory Miller, Williams’ senior vice president, midstream.

Williams expects to close the transaction in first quarter of 2012.

In September, Williams announced plans to expand its cracker at Geismar, Louisiana, as shale gas has improved the competitiveness of US-based petrochemicals production.

($1 = €0.77)

For more on Williams and other producers visit ICIS company intelligence

By: Stefan Baumgarten
+1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index