Williams Signs Largest Processing Contract to Date with Exxon Corporation

Strategic Insights -

A unit of Williams has signed an agreement with Exxon Company USA to process 300 million cubic feet per day of natural gas at a Williams natural gas liquids extraction plant. This deal marks the largest processing contract to date for Williams' field services unit. The NGL extraction plant, expected to be in service by first-quarter 1999, will have 600 million cubic feet per day of inlet capacity. The gas from Exxon represents dedicated production from multiple leases in the Mobile Bay area, which will be filled through an offshore expansion project and other existing gas production.

Key Takeaways:

  • Williams has signed a processing contract with Exxon Company USA to process 300 million cubic feet per day of natural gas.
  • The NGL extraction plant, a Williams field services unit, will have 600 million cubic feet per day of inlet capacity and be in service by first-quarter 1999.
  • The gas from Exxon represents dedicated production from multiple leases in the Mobile Bay area.
  • The remaining capacity of the plant will be filled through an offshore expansion project previously announced by Williams' Transco pipeline and existing gas production.
  • Transco received Federal Energy Regulatory Commission approval to extend its Mobile Bay lateral from its Compressor Station 82 in Coden to a production platform in East Main Pass 261.
  • Williams' Transco pipeline expansion will be phased into service from July to November.
  • This contract is part of Williams' overall Mobile Bay investment strategy, which includes offshore gathering, transmission, processing, NGL transportation, fractionation, and marketing of NGL and gas products.
  • Williams will partner with a world-class organization like Exxon in this "win-win" arrangement.

Statistics:

  • 300 million cubic feet per day of natural gas will be processed at the Williams NGL extraction plant.
  • 600 million cubic feet per day of inlet capacity is expected for the NGL extraction plant.

Sources:

  • PR Newswire, TULSA, Okla., Feb. 25 /PRNewswire/
  • Securities and Exchange Commission, annual report or Form 10-K
  • PR Newswire, Company information is on the World Wide Web at http://www.twc.com