TULSA (dpa-AFX) - Williams Partners L.P. (WPZ) and Williams Companies, Inc. (WMB) announced their intent to pursue an agreement for Williams Partners to acquire Williams' 83.3 percent interest and operatorship of the olefins-production facility in Geismar, La.
Williams Partners expects that the addition of olefins production to its business through this acquisition would be accretive to distributable cash flow, on a per-unit basis for the partnership's unitholders. As contemplated, Williams Partners would fund the transaction largely with the issuance of limited-partner units to Williams.
Further, the partnership expects that the addition of olefins production to its business would bring more certainty to cash flows that today are exposed to the market for ethane, which is projected to experience periods of volatility as demand infrastructure lags new supplies from shale-gas production. Ethylene demand is expected to remain strong as ethylene is and is expected to be significantly less expensive than crude-oil based feedstock.
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