Williams Seals Deal on TransCanada's NGL Assets
Williams' energy services business unit closed its previously announced
acquisition of the natural gas liquids (NGL) portion of TransCanada's midstream
operations. The $540 million deal was first announced on Aug. 3 (see NGI,
The deal includes TransCanada's holdings in the Cochrane, Redwater,
Empress II, Empress V and Younger natural gas liquids and extraction facilities,
along with the West Stoddart natural gas processing plant. The asset package
located in western Canada represents about 6 Bcf/d of gas processing capacity,
225,000 b/d of NGL production capacity, an NGL pipeline and more than five
million barrels of NGL storage capacity.
Steve Malcolm, CEO of Williams' energy services business, said, "The
completion of this agreement is a key milestone for Williams' midstream
business. It vaults us into Canada for the first time in a prominent way
and reinforces Williams' role as a leading NGL producer in North America.
It also builds upon our acquisition of MAPCO in 1998 when we added around
10,000 miles of NGL pipes to our gathering and processing operations."
Williams will become the operator of the Cochrane, Redwater and West
Stoddart sites, but the Empress plants and Younger facility will continue
to be operated by third parties, the company said.
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