Williams Partners, Caiman Energy II to develop Utica shale infrastructure
HOUSTON -- Williams Partners L.P. today announced it will be a funding partner in a joint venture with Caiman Energy II to develop midstream infrastructure serving oil and gas producers in the Utica shale.
“Our producer customers will benefit from introducing the kind of comprehensive large-scale midstream solutions to the area that will make their positions in the liquids- and oil-rich Utica Shale even more valuable.”
Williams Partners, EnCap Flatrock Midstream of San Antonio, Highstar Capital of New York, and Caiman management anticipate investing approximately $800 million to develop natural gas, natural gas liquid and crude oil gathering and processing infrastructure. The area of focus will be the natural gas liquid- and oil-rich areas of the Utica Shale in Ohio and northwest Pennsylvania. Williams Partners’ anticipated share of the $800 million in potential development is approximately $380 million over the next several years.
“This new midstream venture can leverage the commercial relationships and success of Caiman’s management and investors, along with Williams Partners’ long experience in successfully constructing and reliably operating large-scale midstream infrastructure,” said Alan Armstrong, chief executive officer of Williams Partners’ general partner.
“Our producer customers will benefit from introducing the kind of comprehensive large-scale midstream solutions to the area that will make their positions in the liquids- and oil-rich Utica Shale even more valuable,” Armstrong said.
Jack Lafield, chairman and chief executive officer of Caiman Energy, LLC, made the following comments:
“We couldn’t be more pleased to work with such a well-respected company. Together with our other equity partners, Williams' financial strength and experience allows Caiman Energy to continue to provide our producer customers with the best possible midstream solutions as they develop drilling locations in this exciting play. We see great opportunities in the Utica Shale and with the successful completion of this equity transaction, we believe we are well-positioned to expand into the Utica and elsewhere.”