Tulsa’s Williams Partners L.P. announced an agreement with Houston-based Southwestern Energy Company to expand its services in the Appalachian Basin of West Virginia where Williams has established a strong operational footprint, according to a company press release issued on Thursday.
The agreement allows Williams to deliver gas processing, fractionation and liquids handling services in Southwestern’s Wet Gas Acreage in the Marcellus and Upper Devonian Shale along with gas gathering services for Southwestern in its South Utica Dry Gas Acreage.
Williams will provide Southwestern with 660 million cubic feet per day of processing capacity to serve a 135,000-acre dedication in Southwestern’s Marshall and Wetzel county acreages in West Virginia. Williams expects to further build out its Oak Grove processing facility for Southwestern’s expanding production of wet gas. The Oak Grove processing facility has the capability of expanding by an additional 1.8 Bcf/d of gas processing capacity, according to the press release.
Williams’ Northeast Gathering & Processing Operating Area also secured a gathering dedication of Southwestern’s South Utica Dry Gas Acreage – 71,500 acres in Marshall and Wetzel counties in West Virginia. The gathering and processing expansions will be supported by long-term, fee-based agreements and volumetric commitments.
“Executing these agreements with a premier customer like Southwestern is a direct reflection of how well-positioned our existing assets are in our Northeast Gathering & Processing Operating Area footprint,” said Micheal Dunn, chief operating officer and executive vice president of Williams’ general partner. “We look forward to expanding our business relationship with Southwestern in the Northeast where our access to multiple gas takeaway markets and the ability to efficiently expand our infrastructure showcases our ability to serve the rapidly growing gas production in the Marcellus and Utica.”
Downstream gas connections into Columbia’s Leach Xpress and Mountaineer Xpress are being established to boost market access and diversify gas pricing opportunities.
“The new agreements with Southwestern are actually a ‘win-win-win’ opportunity,” said James Scheel, senior vice president for Williams Partners’ Northeast Gathering & Processing Operating Area. “We are able to grow our gathering and processing volumes, expand our services for a valued customer, and increase the takeaway hub by solidifying downstream connections from processing to new interstate pipelines – which benefits all producers in this area.”