Williams Partners LP struck gas gathering and processing agreements with Southwestern Energy Co. to provide midstream services for wet and dry gas production in West Virginia.
Under the contract, Williams Partners would supply 660 MMcf/d of processing capacity to Southwestern's 135,000-acre dedication in its wet gas acreage, located in Marshall and Wetzel counties. The services would include gas processing, fractionation and liquids handling.
To accommodate the agreement, Williams Partners plans to expand its Oak Grove processing facility as Southwestern's wet gas production grows, according to an Oct. 12 news release. The Oak Grove facility is expandable by 1.8 Bcf/d of additional processing capacity.
Williams Partners' Northeast gathering and processing operating area also obtained a gathering dedication of 71,500 acres in Southwestern's south Utica dry gas acreage, also in Marshall and Wetzel counties.
The gathering and processing expansions will be underpinned by long-term, fee-based agreements and volumetric commitments, Williams Partners said in the release. To address market access and gas pricing, the partnership is establishing downstream gas connections via Columbia Pipeline Group Inc.'s Leach Xpress and Mountaineer Xpress pipelines.
"The new agreements with Southwestern are actually a 'win-win-win' opportunity," said James Scheel, senior vice president for Williams Partners' Northeast gathering and processing operating area. "We are able to grow our gathering and processing volumes, expand our services for a valued customer, and increase the takeaway hub by solidifying downstream connections from processing to new interstate pipelines."