Williams’ sale of pipelines, plants to net $782 million
Firm is largest producer of natural gas in Western Slope's Piceance Basin
Williams has agreed to sell its Piceance Basin pipeline and gas plant system for $782 million to a partnership in which it holds a majority interest.
The largest natural gas producer in western Colorado’s Piceance Basin is selling its gathering and processing assets to Williams Partners L.P.
Williams Partners will pay $702 million in cash and the remainder in limited- and general-partner units. The deal is expected to close next month.
Williams owns about 77 percent of Williams Partners, Williams spokesman Jeff Pounds said.
The sale includes Williams’ Parachute Plant Complex, three other gas-treating facilities capable of processing a combined 1.2 billion cubic feet of gas per day, and about 150 miles of pipeline up to 30 inches in diameter. The pipelines gather gas from more than 3,300 wells.
Pounds said Williams contributed most of its gas pipeline and midstream assets to Williams Partners earlier this year in a $12 billion restructuring.
Williams Partners has a long-term gas-gathering agreement with Williams in the Piceance Basin, and with its acquisition will become the largest midstream business in the basin. The midstream industry entails gas treatment, transportation, storage and marketing.