View Cart (0 items)
Oil & Gas

Williams buys Marcellus gas pipeline system from Caimen Energy

March 20, 2012
/ Print / Reprints /
| Share More
/ Text Size+

TULSA, Okla. — Williams Partners LP, the third- biggest U.S. pipeline partnership, agreed to buy a natural-gas pipeline system in the Marcellus Shale from closely held Caiman Energy LLC for $2.5 billion, Bloomberg reported.

Williams will acquire the pipeline unit Caiman Eastern Midstream LLC, which built pipelines, two processing plants and a gas-liquids fractionator with backing from private-equity firm EnCap Flatrock Midstream.

Caiman has agreements with 10 producers to gather and process gas and petroleum liquids from wells drilled across 236,000 acres in West Virginia, Ohio and Pennsylvania.

The companies estimate the Caiman system will gather more than 2 billion cubic feet of gas a day by 2020 and process about 300,000 barrels a day of gas liquids and condensate.

“These new assets, anchored by long-term agreements with a diverse set of customers, give us a major presence in the liquids-rich portion of the Marcellus Shale,” Williams Cos. CEO Alan Armstrong said.

You must login or register in order to post a comment.