Williams in deal to process gas from Southwestern
Houston, 12 October (Argus) — Williams Partners will expand its natural gas processing services in the Marcellus shale as part of an agreement to handle 660mn cf/d (19mn m³/d) from producer Southwestern Energy.
The infrastructure company will provide fractionation, processing and handling services for Southwestern on 135,000 acres in the West Virginia counties of Marshall and Wetzel, which sit atop a liquids-rich area of the Marcellus.
Williams has also agreed to gather and process production from Southwestern on 71,500 acres in a dry-gas area of the Utica shale, also in Marshall and Wetzel. The Marcellus and Utica shale overlap in some areas.
The gas will be processed at the nearby 600mn cf/d Oak Grove Processing plant. The agreement will require Williams to build out that plant. Oak Grove can expand to accommodate an additional 1.8 Bcf/d, the company said.
Williams plans to establish connections with Columbia Gas pipeline's Leach Xpress and Mountaineer Xpress to diversify gas pricing opportunities.
Leach Xpress is a 1.5 Bcf/d, $1.5bn pipeline project that will provide Marcellus gas to markets in West Virginia and Ohio as well as other parts of the country. It is scheduled to begin service in November 2017.
The $1.8bn Mountaineer Xpress, which is scheduled to begin service in the fall of 2018, will provide an outlet for about 2.7 Bcf/d of Marcellus production to markets along the Columbia Gas pipeline in western West Virginia.