Williams Partners L.P. (WPZ) Monday revealed an agreement to sell its membership interest in Williams Olefins LLC in the Geismar, Louisiana to Nova Chemicals for $2.1 billion in cash. Williams Partners plans to use the cash proceeds from the Williams Olefins transaction to pay off its $850 million term loan and to fund a portion of the capital and investment expenditures.
Williams Olefins owns an 88.46 percent undivided ownership interest in the Geismar, Louisiana, olefins plant and associated complex.
Williams Partners said its subsidiaries will enter into long-term supply and transportation agreements with Nova Chemicals to provide feedstock to the Geismar olefins plant.The Williams Olefins transaction is expected to close in summer 2017.
Alan Armstrong, chief executive officer of Williams Partners' general partner said, "When the Williams Olefins transaction closes, we expect to be at 97 percent fee-based revenues driven largely by natural gas volumes. Today's announcements further strengthen our financial position to support Williams' peer-leading, low-risk growth portfolio."
by RTT Staff Writer
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