US Williams completes sale of interest in Geismar cracker

Source: ICIS News


HOUSTON (ICIS)--Williams Partners has completed a previously announced deal to sell its 88.46% interest in an olefins facility at Geismar, Louisiana, to Canada-based NOVA Chemicals for $2.1bn in cash, the US energy company said on Thursday. At the same time, Williams agreed with NOVA to supply the Geismar plant with feedstock through its US Gulf Coast ethane pipeline systems, it said. The Geismar cracker has an ethylene capacity of 885,000 tonnes/year, according to ICIS plants and projects. Williams plans to use the cash proceeds from the sale to pay off a $850m term loan and to fund a portion of its capital and investment expenditures. "Completing this successful transaction represents another important step in our natural gas-focused business strategy to deliver predictable long-term growth as we reduce our commodity-margin exposure," said CEO Alan Armstrong. About 97% of Williams Partners’ gross margins will now come from predictable fee-based sources, including the new long-term supply and transportation deal with NOVA, the CEO added.