The Laser Gathering System comprises 33 miles of 16-inch natural gas pipeline and associated gathering facilities in Susquehanna County, Pennsylvania, as well as ten miles of gathering pipeline in southern New York.
The acquisition is supported by existing long-term gathering agreements that provide acreage dedications and volume commitments. As production in the Marcellus increases, the system is expected to reach a capacity of 1.3 billion cubic feet per day (Bcf/d).
“The acquisition of the Laser system continues our strategy of safely and reliably serving producers through large-scale midstream infrastructure in the Marcellus Shale and other basins,” said Rory Miller, senior vice president of Midstream for Williams Partners.
Williams Partners plans to fund the purchase price of the acquisition with a combination of $300m cash and around 7.5 million Williams Partners common units. DMP, which is owned by American Securities, bought the assets last year.
DMP has a capital commitment from American Securities to acquire up to $2bn in midstream energy assets and businesses. The firm typically invests in opportunities valued at between $50m and $500m, according to its website.
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