Williams to provide gas processing, fractionation and liquids handling for Southwestern’s wet gas acreage in the Marcellus, Upper Devonian plus gathering, processing for Southwestern’s South Utica dry gas
Tulsa’s Williams Partners LP (ticker: WPZ) executed agreements with Southwestern Energy Company (ticker: SWN) this week to expand services to Southwestern in the Appalachian basin of West Virginia.
Williams Partners will provide Southwestern with 660 million cubic feet per day (MMcf/d) of processing capacity to serve a 135,000-acre dedication in Southwestern’s Wet Gas Acreage in the Marcellus and Upper Devonian Shale in Marshall and Wetzel counties in West Virginia.
Williams Asset Map: source: Williams
Williams said it expects to further build out its Oak Grove processing facility for Southwestern’s expanding production of wet gas. The Oak Grove processing facility has the ability to expand by an additional 1.8 Bcf/d of gas processing capacity.
Williams Partners’ Northeast Gathering & Processing Operating Area also secured a gathering dedication of Southwestern’s South Utica Dry Gas Acreage – 71,500 acres in Marshall and Wetzel counties in West Virginia. The gathering and processing expansions will be supported by long-term, fee-based agreements and volumetric commitments.
Source: Southwestern Energy investor presentation
“Executing these agreements with a premier customer like Southwestern is a direct reflection of how well-positioned our existing assets are in our Northeast Gathering & Processing Operating Area footprint,” said Micheal Dunn, chief operating officer and executive vice president of Williams Partners’ general partner.
The company said that downstream gas connections into Columbia’s Leach Xpress and Mountaineer Xpress are being established to boost market access and diversify gas pricing opportunities.
Federal Energy Regulatory Commission (FERC) has approved the construction of the Leach XPress and Rayne XPress projects, two of the Columbia Pipeline Group projects that were designed to transport natural gas from the Marcellus and Utica production areas to Midwest and Gulf Coast markets. Source: Columbia Pipeline
Williams SVP James Scheel said Williams can increase the takeaway hub by solidifying downstream connections from processing to new interstate pipelines which would benefit all producers in this area.
Tulsa’s Williams (NYSE: WMB) owns approximately 74 percent of Williams Partners.
