The Geismar facility is a light-end natural gas liquid (NGL) cracker which has an annual production capacity of 1.35 billion pounds of ethylene, and the current volumes of ethane are about 37,000 barrels per day (bpd) and 3,000 bpd of propane.
Williams Partners is expecting the acquisition will raise its distributable cash flow on a per-unit basis for the partnership’s unit holders.
Williams Partners general partner chief executive officer Alan Armstrong said adding the Geismar olefins-production facilities to the company’s portfolio would immediately reduce the partnership’s exposure to the ethane market by nearly 70% and it would nearly eliminate it by 2014.
"The business is highly desirable because it would create greater consistency in our earnings and cash flows," Armstrong added.
"It provides strong support of our plans for continued growth in the cash distributions we pay unitholders."
The facility is undergoing a $350-$400m expansion program which once completed will result in the increase in the annual ethylene production capacity by 600 million pounds resulting in 1.95 billion pounds of ethylene.
The Geismar facility also produces propylene, butadiene and debutanized aromatic concentrate along with ethane, propane and ethylene.
Williams owns 68% of Williams Partners, including the general-partner interest and the transaction between the two parties will be subjected to the approval of the board of directors.
Williams Partners will fund the acquisition mostly by issuing limited-partner units to Williams.
US based Williams is an energy infrastructure company where as Williams Partners focuses on natural gas transportation; gathering, treating, and processing; storage; natural gas liquid fractionation; and oil transportation.
