The Williams Companies continues to plan asset sales to strengthen its liquidity and improve its balance sheet. The company announced Tuesday that it is considering selling its ownership interest in an olefins production plant in Geismar, LA, and an associated ethylene pipeline system in Louisiana, as well as a Baltic refinery. Terms of a potential petrochemical asset sale have not been developed, but Williams said it has received unsolicited expressions of interest.

“Our petrochemical segment has been a positive contributor to Williams’ bottom line, even when other ethylene producers are struggling in current market conditions,” said Phil Wright, CEO of Williams’ energy services unit. “We prefer to retain our ethane pipeline and storage system in Louisiana because it supports our deepwater Gulf Coast strategy, but we are willing to gauge the market value of our other olefins interests to see if we have a genuine opportunity to enhance our cash position.”

The plant has a production capacity of 1.35 billion pounds of ethylene per year and is the leading merchant marketer of ethylene in Louisiana. The plant is tied to most major natural gas liquids producers and olefin consumers in Louisiana by a 215-mile ethane transportation pipeline and an 85-mile ethylene pipeline. Williams, which owns 42% of the facilities, is also the operator of the assets. Other joint owners are BASF Corp. and GE Petrochemicals.

Williams already has agreed to sell its 27% stake in a Lithuanian oil refinery to Russia’s Yukos Oil Co. for $85 million. The Lithuanian government, which holds 41% of the refinery, opposes the sale in part because it would give greater power to Russian interests. The Mazeikiu Nafta plant has a refining capacity of 263,320 b/d. It is the only refinery in the Baltic States. Closing of the transaction is expected before the end of September 2002.

On Friday, Williams also sold its stake in Northern Border Partners, which owns the Northern Border pipeline system, to TransCanada PipeLines Ltd. for $12 million (see Daily GPI, Aug. 19). That deal follows the sale of Kern River Gas Transmission to MidAmerican Energy Holdings earlier this year. As of Aug. 1, Williams had raised $3.4 billion from asset sales and loans to stave off bankruptcy.

Williams still owns several large interstate natural gas systems, including its Northwest Central and Northwest pipelines, Texas Gas Transmission, and Transcontinental Gas Pipe Line. It also has a 14.6% interest in Alliance Pipeline and a 50% interest in the new $1.6 billion Gulfstream Pipeline. In addition to a number of petroleum and liquids and gathering lines, processing plants, terminals and storage facilities, it owns 60% of Williams Energy Partners, which owns the Williams refined petroleum products pipeline system. Williams also owns Barrett Resources, for which it paid about $2.5 billion a year ago. That property, however, has been pledged as security for a loan from Warren Buffett’s Berkshire Hathaway.

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