Williams Field Services Group Acquires Gas Company of New Mexico's Assets

Strategic Insights -

Williams Field Services Group has acquired the natural gas gathering and processing assets of Gas Company of New Mexico, marking a significant expansion of the company's operations. The acquisition, valued at $155 million, will enable Williams Field Services to increase system efficiencies and provide additional marketing opportunities for its customers. The new assets include a natural gas gathering, treating, and processing system in the San Juan and Permian basins of New Mexico, which will be operated by Williams Field Services.

Key Takeaways:

  • The acquisition of Gas Company of New Mexico's assets by Williams Field Services Group is valued at $155 million.
  • The acquired assets include a natural gas gathering, treating, and processing system in the San Juan and Permian basins of New Mexico.
  • Williams Field Services Group plans to increase the load factor of the system to 90-95 percent within two years.
  • The company has negotiated long-term agreements with producers for virtually all of the gas connected to the Gas Company of New Mexico gathering and processing systems.
  • Williams Field Services Group will begin building an interconnect from the Kutz processing plants near Bloomfield to the Blanco Hub, a multi-pipeline marketing interexchange, as soon as it receives permits.

Statistics:

  • The acquisition of Gas Company of New Mexico's assets is valued at $155 million.
  • The acquired assets include a natural gas gathering, treating, and processing system in the San Juan and Permian basins of New Mexico.
  • Williams Field Services Group plans to increase the load factor of the system to 90-95 percent within two years.
  • The company has negotiated long-term agreements with producers for virtually all of the gas connected to the Gas Company of New Mexico gathering and processing systems.
  • The interconnect from the Kutz processing plants to the Blanco Hub will provide an additional 100 MMcfd of take-away capacity from the plants and access to two additional interstate pipelines.

Sources:

  • "Williams Field Services Group Completes Acquisition of Gas Company of New Mexico Assets" (PRNewswire, July 5, 1995)
  • "Williams Field Services Group" (Williams' official website, 1995)
  • "Gas Company of New Mexico" (Public Service Company of New Mexico, 1995)