Williams, Brazos Midstream form energy partnership in Permian Basin
Williams and Brazos Midstream officials said the entities have formed a partnership designed to provide existing and prospective Delaware Basin customers with an enhanced suite of services.
Officials said the effort involves Williams contributing its existing Delaware Basin assets to the partnership in exchange for a 15 percent minority position in the joint venture – adding the contribution of the Williams assets will expand the footprint of the current Brazos system.
“This joint venture increases our scale in the Delaware Basin, including a much larger footprint, new processing capabilities and greater exposure to an impressive customer base,” Chad Zamarin, Williams senior vice president for Corporate Strategic Development, said. “We are pleased to partner with Brazos Midstream on this joint venture. Their high-quality gathering pipelines and processing assets, combined with their industry-leading capabilities in Reeves, Ward, and Pecos counties are an excellent match for the gathering systems and additional capabilities that Williams is contributing as part of this transaction.”
Under the agreement officials said Brazos, possessing an 85 percent ownership in the joint venture, will operate pro-forma 725 miles of gas gathering pipelines, 260 MMcf/d of natural gas processing, 75 miles of crude oil gathering pipelines and 75,000 barrels of oil storage, located across Reeves, Loving, Ward, Winkler, Pecos and Culberson counties in Texas.
“Brazos operates a strategically-located midstream platform in a region that has seen tremendous production growth,” Brad Iles, Brazos CEO, said. “This year we have continued to expand our asset base in cooperation with our new sponsor, Morgan Stanley Infrastructure Partners, in order to provide exceptional service to our producer customers. We are excited to form this joint venture with Williams and greatly appreciate the confidence they have in Brazos to entrust us with operatorship of their assets and stewardship of their customers.”
