Williams, Brazos Midstream Agree to Joint Venture in Delaware Basin
TULSA, Okla. – Williams and Brazos Midstream agreed to a partnership in the Delaware Basin, under which Williams will contribute its Delaware Basin assets in exchange for a 15% minority position in the venture.
The contribution of the Williams assets will expand the footprint of the current Brazos system and the combined capabilities of the Partnership will provide existing and prospective customers with an enhanced suite of services.
With an 85% ownership share, Brazos will operate 725 miles of gas gathering pipelines, 260 MMcf/d of natural gas processing, 75 miles of crude oil gathering pipelines and 75,000 barrels of oil storage, located across Reeves, Loving, Ward, Winkler, Pecos, and Culberson counties in Texas.
“This joint venture increases our scale in the Delaware Basin, including a much larger footprint, new processing capabilities and greater exposure to an impressive customer base,” said Williams Senior Vice President for Corporate Strategic Development Chad Zamarin.
In addition, Brazos is constructing its 200 MMcf/d Comanche III natural gas processing plant expected to be fully operational by first quarter 2019, bringing the Partnership’s total operated processing capacity in the Delaware Basin to 460 MMcf/d.
The joint venture will be supported by over 500,000 acres of long-term dedications under full-field horizontal development.
As part of the transaction, Williams and Brazos also agreed to develop natural gas residue solutions.
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