On Tonight7:00 PM
|
Williams Partners ups ante on Overland Pass PipelineWilliams Partners ups ante on Overland Pass PipelineMonday, July 26, 2010 By Business Report Staff TULSA — Williams Partners L.P. has announced that it will be exercising its option to increase its ownership of the Overland Pass Pipeline Co. from 1 percent to 50 percent. The Overland Pass Pipeline is a 760-mile natural gas liquids (NGL) pipeline from Opal to the Mid-Continent NGL market center in Conway, Kansas. The pipeline, which went into service in November 2008, can transport approximately 140,000 barrels per day with the ability to expand capacity to 255,000 barrels per day with additional pump facilities. The market center in Conway is a primary NGL distribution and storage hub. The option price is estimated to be approximately $425 million, an amount equal to 50 percent of the total project cost, less depreciation to-date. Subject to regulatory approvals, Williams Partners expects to close the transaction in the third quarter with an effective date of June 30, 2010. Williams Partners plans to fund the purchase price with a combination of cash on hand and borrowings from its existing credit facility. "This transaction provides an ideal strategic growth opportunity for Williams Partners," said Steve Malcolm, chief executive officer of the general partner of Williams Partners. "Overland Pass already has significant capacity to move NGLs from key producing areas in the Rockies and is also positioned for further expansion to provide even more organic growth in the future." Williams Partners' equity NGL volumes from its two Wyoming plants and its Willow Creek facility in Colorado are dedicated for transport on Overland Pass Pipeline under a long-term shipping agreement. As long as Williams Partners owns at least 50 percent of Overland Pass Pipeline Company, it will have the option to become the operator by providing ONEOK Partners at least 30 days notice. On the web: at www.williamslp.com |
Your donation to Wyoming PBS ensures the
continuation of the thought-provoking, informative and entertaining programs you’ve come to expect from us.
