Williams Partners acquire Williams’ Geismar olefins facility

Williams Partners to acquire Williams’ Geismar olefins facility

3:55 AM, 2nd November 2012
Williams Partners to acquire Williams’ Geismar olefins facility

TULSA, US: Williams Partners has agreed to acquire Williams’ approximately 83 per cent undivided interest in the Geismar olefins production facility, as well as Williams’ refinery-grade propylene splitter for $2.264 billion and pipelines in the Gulf region, for $100 million. Additionally, Williams Partners will be responsible for the completion of the ongoing expansion of the Geismar facility projected to cost $270 million and additional pipelines projected to cost approximately $160 million.

Williams also agreed to temporarily waive approximately $16 million per quarter of general partner incentive distribution rights (IDRs) until the later of 31 December 2013 or 30 days after the Geismar plant expansion is operational. Williams estimates the foregone IDRs will last approximately five quarters, which would total $80 million.

Williams currently owns approximately 66 per cent of Williams Partners, including the general-partner interest. Following the closing of this transaction Williams will own approximately 70 per cent of Williams Partners, including the general-partner interest. Williams Partners plans to fund the acquisition with the issuance to Williams of 42.8 million Williams Partners limited-partner units, $25 million in cash and an increase to the general partner’s capital account to maintain Williams’ 2 per cent general-partner interest. The transaction is expected to close in early November.

“The addition of the Geismar facility to Williams Partners’ portfolio immediately reduces the partnership’s exposure to the over-supplied ethane markets by nearly 70 per cent and eliminates it by 2014, while increasing our ability to produce globally marketed ethylene. Bringing this natural hedge to Williams Partners makes it unique among similarly situated MLPs. In addition, it provides strong support for our continuing distribution growth,” said Alan Armstrong, CEO, the general partner, Williams Partners.

© WOC News



Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News

Sigma-Aldrich, CrystalGenomics collaborate for API development

ST LOUIS, US: The custom manufacturing and services business unit of Sigma-Aldrich Corporation, SAFC, has signed an agreement with Seoul, South Korea- ...

Read more
Lonza to cut 500 jobs, plans to improve profitability

ZURICH, SWITZERLAND: Lonza plans to cut 500 jobs, including 400 at its main plant in Visp, to improve profitability as it grapples with price pressure ...

Read more
Celebrate Halloween through chemistry

SINGAPORE: Halloween, the yearly celebration observed in a number of countries on 31 October, is the eve of the Western Christian feast of All Hallows ...

Read more
Massive storm Sandy hits US, death toll rises

NEW YORK, US: The northeastern United States battled epic flood waters and lengthy power outages on 30 October 2012 after the massive storm Sandy pumm ...

Read more
Chemistry behind blue skin due to silver ingestion

PROVIDENCE, US: Researchers from Brown University have shown for the first time how ingesting too much silver can cause argyria, a rare condition in w ...

Read more
Sibur launches second phase of EPS plant in Perm, Russia

PERM, RUSSIA: Sibur launched its second phase of ALPHAPOR expandable polystyrene (EPS) production line in Perm, Russia. The design capacity of the new ...

Read more
www.worldofchemicals.com uses cookies to ensure that we give you the best experience on our website. By using this site, you agree to our Privacy Policy and our Terms of Use. X