Williams in Deal with Southwestern for Marcellus, Utica Midstream Services

Williams Partners has reached an agreement with Southwestern Energy to expand its services to Southwestern in the Appalachian Basin of West Virginia.

Under the agreement, Williams will provide 660mn ft³/day of processing capacity to serve wet gas production from 135,000 acres of Southwestern Energy’s Marcellus and Upper Devonian shale assets in West Virginia. The agreement will require Williams to continue to build out its Oak Grove processing facility, which has the ability to expand by another 1.8bn ft³/day.

Williams also secured an agreement covering production from 71,500 acres of Southwestern’s Utica dry gas assets, also in West Virgina. The gathering and processing expansions will be supported by long-term, fee-based agreements and volumetric commitments.

Dale Lunan