Williams Partners Initiates To Explore Monetization Of Geismar Olefins Facility

(RTTNews) - Williams Partners L.P. (WPZ) said that it has initiated an adviser-led process to explore the monetization of its indirect ownership interest in the Geismar, Louisiana olefins plant and complex. The process may result in a sale or a long-term, fee-for-service tolling agreement.

Williams Partners currently holds an approximate 88.5 percent undivided ownership interest in the Geismar olefins plant and is operator of the facility.

In 2015, Williams Partners placed in service an expansion of the facility that increased its ethylene production capacity by 600 million pounds per year, for a total production of 1.95 billion pounds of ethylene and 114 million pounds of propylene per year. The plant is a predominantly ethane-fed, light-end natural gas liquids cracker. Williams has held an ownership stake in the Geismar plant since 1999.

If the process results in a sale, Williams Partners would expect to use a portion of the proceeds to reduce debt in order to maintain investment-grade credit metrics and the balance of the proceeds would reduce planned equity issuances.

The Geismar announcement follows the August 8, 2016 announcement by the partnership and Williams that they have agreed to sell their Canadian businesses to Inter Pipeline Ltd. for combined cash proceeds of C$1.35 billion. The Canadian transaction is expected to close in 2016.