23 July 2012 16:27 [Source: ICIS news]
HOUSTON (ICIS)--Williams Partners has agreed to acquire the 83.3% stake of a Louisiana cracker from its related company, Williams, the US-based mid-stream firm said on Monday.
Williams owns a 68% interest in Williams Partners.
Williams did not disclose financial terms of the deal or say when the deal should close.
"Adding the Geismar olefins-production facilities to Williams Partners' portfolio would immediately reduce the partnership's exposure to the ethane market by nearly 70%, and it would nearly eliminate it by 2014," according to a statement by Alan Armstrong, chief executive officer of the general partner of Williams Partners.
"The business is highly desirable because it would create greater consistency in our earnings and cash flows. It provides strong support of our plans for continued growth in the cash distributions we pay unitholders," Armstrong said.
The ethane cracker in Geismar, Louisiana, has an ethylene capacity of 1.35bn lb/year (612,000 tonnes/year), the company said.
By late 2013, the cracker's capacity should grow by 600m lb/year.
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