US Williams, Shell agree on JV in shale gas plays

11 April 2013 23:50  [Source: ICIS news]

HOUSTON (ICIS)--Williams Partners and Shell have teamed up on a joint venture to handle infrastructure for production in the Marcellus and Utica shale gas plays in northwest Pennsylvania, Williams announced on Thursday.

The new venture, called Three Rivers Midstream, has signed a long-term, fee-based dedicated gathering and processing agreement for global oil and gas giant Shell’s production in the area, including about 275,000 acres (111,000 ha), US-based Williams said in a press release.

Three Rivers Midstream also plans to pursue gathering and processing agreements with other producers in northwest Pennsylvania and northeast Ohio, Williams said.

Three Rivers Midstream plans to build a 200m cf/day cryogenic gas processing plant and related facilities at a location to be determined, the company said.

The plant, which will handle both wet gas and dry gas, is expected to be in service by the second quarter of 2015.

The system is expected to be connected to two major proposed developments in Pennsylvania – Shell's proposed ethane cracker in Beaver County and the proposed Williams-Boardwalk joint venture to develop the Bluegrass Pipeline system that would deliver Marcellus and Utica liquids to the Gulf coast and export markets, Williams said.

The planned Bluegrass pipeline is targeting a late 2015 in-service date.

Williams initially will own substantially all of Three Rivers Midstream and operate the assets, with Shell having the right to invest capital and increase its ownership prior to mid-2015, Williams said.

Williams estimates their initial investment into the plant at $150m (€114m). Subsequent capital investment is expected as the joint venture’s business and scale increases, Williams said.

($1 = €0.77)


By: Jeremy Pafford
+1 713 525 2653



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