Williams and Brazos Midstream have agreed to enter a JV in the larger lobe of the Permian Basin – the Delaware Basin.
According to the agreement, Williams will contribute its existing Delaware Basin assets to the partnership for a 15 per cent minority position in the JV, expanding the footprint of the Brazos system and offer an enhanced suite of services to customers.
In addition, the JV will develop natural gas residue solutions to further benefit Delaware Basin producers.
Brazos, with 85 per cent ownership, will operate 1,167 km of gas gathering pipeline, 7.4 million m3/d of natural gas processing, 121 km of crude oil gathering pipelines and 75,000 barrels of oil storage across six counties in Texas.
Brazos is also currently constructing its previously announced Comanche III natural gas processing plant.
Planned to be operational by the first quarter 2019, the plant will raise the JV’s total operated processing capacity in the Delaware Basin to 13 million m3/d.
Williams Senior Vice President Corporate Strategic Development Chad Zamarin said, “We are pleased to partner with Brazos Midstream on this joint venture.
“Their high-quality gathering pipelines and processing assets, combined with their industry-leading capabilities in Reeves, Ward, and Pecos counties are an excellent match for the gathering systems and additional capabilities that Williams is contributing as part of this transaction.
“With the residue gas position that we will establish together with Brazos, we unlock additional opportunities for value, as growing Permian natural gas supply increasingly needs access to high-value demand markets, including premium Gulf Coast markets served by our Transco system, the nation’s largest pipeline system by volume.”
For more information visit the Williams website.
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