Profile: Williams Companies Inc (WMB.N)
27 Feb 2017
The Williams Companies, Inc., incorporated on February 3, 1987, is an energy infrastructure company focused on connecting North America's hydrocarbon resource plays to markets for natural gas, natural gas liquids (NGLs) and olefins. The Company's segments include Williams Partners, Williams NGL & Petchem Services, and Other. Its Williams Partners segment consists of its consolidated partnership Pre-merger Williams Partners L.P. (WPZ), which includes gas pipeline and midstream businesses. The gas pipeline business includes interstate natural gas pipelines and pipeline joint project investments. The midstream business provides natural gas gathering, treating, processing and compression services; NGL production, fractionation, storage, marketing and transportation; deepwater production handling and crude oil transportation services, and an olefin production business and consists of various subsidiaries and joint project investments. Its Canadian midstream operations include an oilsands off gas processing plant near Fort McMurray, Alberta, an NGL/olefin fractionation facility, and the Boreal Pipeline. Its Other segment consists of corporate operations and its Canadian construction services company. Its operations are located in the United States, but span from the deepwater Gulf of Mexico to the Canadian oil sands.
The Company's Williams Partners segment's gas pipeline businesses consist of Transco and Northwest Pipeline. The Company's gas pipeline business also holds interests in joint venture interstate and intrastate natural gas pipeline systems, including equity-method investment in Gulfstream and an interest in Constitution, which is under development. Transco and Northwest Pipeline owns and operates a combined total of approximately 13,600 miles of pipelines with a total annual throughput of approximately 4,140 trillion British thermal unit (TBtu) of natural gas and peak-day delivery capacity of approximately 15.4 million decatherms (MMdth) of natural gas.
Transco is an interstate natural gas transmission company that owns and operates approximately 9,700-mile natural gas pipeline system extending from Texas, Louisiana, Mississippi and the offshore Gulf of Mexico through Alabama, Georgia, South Carolina, North Carolina, Virginia, Maryland, Delaware, Pennsylvania and New Jersey to the New York City metropolitan area. The system serves customers in Texas and approximately 10 southeast and Atlantic seaboard states, including metropolitan areas in Georgia, North Carolina, Washington, District of Columbia, Maryland, New York, New Jersey and Pennsylvania. Transco's system has a delivery capacity of approximately 6.4 MMdth of natural gas per day from its production areas to its markets, including delivery capacity from the mainline to locations on its Mobile Bay Lateral. Using its Leidy Line along with market-area storage and transportation capacity, Transco can deliver approximately 5.1 MMdth of natural gas per day for a system-wide delivery capacity of over 11.5 MMdth of natural gas per day. Transco's system includes approximately 40 compressor stations, over four underground storage fields and a liquefied natural gas (LNG) storage facility. Compression facilities at sea level-rated capacity total approximately 1.8 million horsepower.
Transco's natural gas transportation customers are public utilities and municipalities that provide service to residential, commercial, industrial and electric generation end users. Shippers on Transco's system include public utilities, municipalities, intrastate pipelines, direct industrial users, electrical generators, gas marketers and producers. Transco has natural gas storage capacity in approximately four underground storage fields located on or near its pipeline system or market areas and operates over two of these storage fields. Transco also has storage capacity in an LNG storage facility that it owns and operates. The total usable gas storage capacity available to Transco and its customers in such underground storage fields and LNG storage facility and through storage service contracts is approximately 200 billion cubic feet (Bcf) of natural gas. Transco's customers had stored in its facilities approximately 160 Bcf of natural gas. In addition, subsidiaries of Transco operate and hold equity-method investment in Pine Needle LNG Company, LLC, an LNG storage facility with approximately four Bcf of storage capacity.
The Company's Northwest Pipeline is an interstate natural gas transmission company that owns and operates a natural gas pipeline system extending from the San Juan basin in northwestern New Mexico and southwestern Colorado through Colorado, Utah, Wyoming, Idaho, Oregon, and Washington to a point on the Canadian border near Sumas, Washington. Northwest Pipeline provides services for markets in Washington, Oregon, Idaho, Wyoming, Nevada, Utah, Colorado, New Mexico, California and Arizona directly or indirectly through interconnections with other pipelines. Northwest Pipeline's system has long-term firm transportation and storage redelivery agreements of approximately 3.8 million dekatherms per day (MMdth/d) consists of over 3,900 miles of mainline and lateral transmission pipelines and approximately 40 transmission compressor stations having a combined sea level-rated capacity of approximately 472,000 horsepower. Northwest Pipeline transports and stores natural gas for customers, including local natural gas distribution companies, municipal utilities, direct industrial users, electric power generators and natural gas marketers and producers.
Northwest Pipeline owns interest in the Jackson Prairie underground storage facility in Washington and contracts with a third-party for natural gas storage services in the Clay basin underground field in Utah. Northwest Pipeline also owns and operates an LNG storage facility in Washington. These storage facilities have an aggregate working natural gas storage capacity of 14.2 MMdth of natural gas, which is utilized for third-party natural gas. Gulfstream is a 745-mile interstate natural gas pipeline system extending from the Mobile Bay area in Alabama to markets in Florida, which has a capacity to transport approximately 1.3 billion cubic feet of natural gas per day (Bcf/d). Williams Partners, through a subsidiary, owns interest in Gulfstream.
The Company's midstream business is the natural gas gatherers and processors, which has primary service areas concentrated in producing basins in Arkansas, Colorado, New Mexico, Oklahoma, Texas, Wyoming, the Gulf of Mexico, Louisiana, Pennsylvania, West Virginia, New York and Ohio. The primary businesses are natural gas gathering, treating and processing; NGL fractionation, storage and transportation; crude oil transportation, and olefins production. It also owns and operates gas gathering and processing assets and pipelines within the onshore, offshore shelf and deepwater areas in and around the Gulf Coast states of Texas, Louisiana, Mississippi and Alabama. Its gathering systems receive natural gas from producers' oil and natural gas wells and gather these volumes to gas processing, treating or redelivery facilities. The Williams Partners' treating facilities remove water vapor, carbon dioxide, and other contaminants and collect condensate, but do not extract NGLs. Its processing plants extract the NGLs in addition to removing water vapor, carbon dioxide and other contaminants.
The Company's NGL products include Ethane, which is used in the petrochemical industry as a feedstock for ethylene production, one of the basic building blocks for plastics; Propane, which is used for heating, fuel and as a petrochemical feedstock in the production of ethylene and propylene, another building block for petrochemical-based products, such as carpets, packing materials and molded plastic parts, and Normal butane, isobutane and natural gasoline, which are used by the refining industry as blending stocks for motor gasoline or as a petrochemical feedstock. The Company owns and operates several natural gas treating facilities in New Mexico, Colorado, Texas and Louisiana. It also owns and operates fractionation facilities at Moundsville, de-ethanization and condensate facilities at its Oak Grove processing plant, another condensate stabilization facility near its Oak Grove plant, and an ethane transportation pipeline. Its approximately two condensate stabilizers are capable of handling over 10 thousand barrels per day (Mbbls/d) of field condensate. NGLs are extracted from the natural gas stream in its cryogenic processing plants. Its Oak Grove de-ethanizer is capable of handling approximately 80 Mbbls/d of mixed NGLs to extract over approximately 40 Mbbls/d of ethane. The remaining mixed NGL stream from the de-ethanizer is then transported and fractionated at its Moundsville facilities, which are capable of handling approximately 40 Mbbls/d of mixed NGLs. Ethane produced at its de-ethanizer is transported to markets through its 50-mile ethane pipeline from Oak Grove to Houston, Pennsylvania.
The Company owns and operates approximately four deepwater crude oil pipelines and own production platforms serving the deepwater in the Gulf of Mexico. Its offshore floating production platforms provide centralized services to deepwater producers, such as compression, separation, production handling, water removal and pipeline landings. Its Canadian operations include an oil sands offgas processing plant located near Fort McMurray, Alberta, and an NGL/olefin fractionation facility located at Redwater, Alberta, which is near Edmonton, Alberta, which is near Edmonton, Alberta, and the Boreal Pipeline, which transports NGLs and associated olefins from its Fort McMurray plant to its Redwater fractionation facility. Its Fort McMurray area facilities extract liquids from the offgas produced by a third-party oil sands bitumen upgrader. It extracts, fractionates, treats, stores, terminals and sells the ethane/ethylene, propane, propylene, normal butane (butane), iso-butane, alky feedstock and condensate recovered from this process.
The Company's Fort McMurray extraction plant has processing capacity of approximately 120 million cubic feet per day (MMcf/d) with the ability to recover over 30 Mbbls/d of olefin and NGL products. Its Redwater fractionator has a liquids handling capacity of approximately 30 Mbbls/d. It also purchases small volumes of olefin/NGLs mixes from third-party gas processors, fractionate the olefins and NGLs at its Redwater plant and sell the resulting products. The Boreal Pipeline is a 261-mile pipeline in Canada that transports recovered NGLs and olefins from its extraction plant in Fort McMurray to its Redwater fractionation facility. The pipeline has an initial capacity of approximately 40 Mbbls/d. Its products are sold within Canada and the United States. It has interest and operatorship of the olefins production facility in Geismar, Louisiana, along with a refinery grade propylene splitter and pipelines in the Gulf region. Its olefins business also operates an ethylene storage hub at Mont Belvieu using leased third-party underground storage caverns.
The Company owns approximately 280-mile Bayou Ethane Pipeline, which operates between Texas and Louisiana. The pipeline connects over 57-mile pipeline segment from Mont Belvieu to Port Arthur, Texas, and an approximately 50-mile pipeline segment from Lake Charles, Louisiana, to Port Arthur. The pipeline provides ethane transportation capacity from fractionation and storage facilities in Mont Belvieu, Texas, to the WPZ Geismar olefins plant in south Louisiana and serves customers along the way. It also owns equity-method investment in Aux Sable and its Channahon, Illinois, gas processing and NGL fractionation facility near Chicago. The facility is capable of processing approximately 2.1 Bcf/d of natural gas from the Alliance Pipeline system and fractionating over 110 Mbbls/d of extracted liquids into NGL products. Additionally, Aux Sable owns approximately 80 MMcf/d gas conditioning plant and over 10-inch and approximately 80-mile gas pipeline infrastructure in North Dakota that provides additional NGLs to Channahon from the Bakken Shale in the Williston basin.
WPZ organizes its businesses into operating areas, which include Central, Northeast G&P, Atlantic-Gulf, West and NGL & Petchem Services. Its Central area consists of domestic gathering, treating, and compression services to producers under long-term, fixed fee contracts. Its primary operating areas are in the Barnett Shale region of north-central Texas, the Eagle Ford Shale region of south Texas, the Haynesville Shale region of northwest Louisiana and the Mid-Continent region, which includes the Anadarko, Arkoma, Delaware and Permian basins. WPZ's Central also includes equity-method investment in the Delaware basin gas gathering system in the Permian region. Its Northeast G&P area consists of natural gas gathering and processing and NGL fractionation businesses in the Marcellus Shale region in Pennsylvania, New York, and West Virgina and the Utica Shale region of eastern Ohio, as well as equity-method investment in Utica East Ohio Midstream LLC (UEOM), Laurel Mountain Midstream, LLC (Laurel Mountain), Caiman Energy II, LLC (Caiman II) and Appalachia Midstream Services, LLC, which owns equity-method investment in multiple gas gathering systems in the Marcellus Shale (Appalachia Midstream Investments). Its West area consists of the natural gas gathering, processing, and treating operations in New Mexico, Colorado, and Wyoming and an interstate natural gas pipeline, Northwest Pipeline.
The Company owns interest in and operates the facilities of Discovery. Discovery's assets include approximately 600 MMcf/d cryogenic natural gas processing plant near Larose, Louisiana; over 30 Mbbls/d NGL fractionator plant near Paradis, Louisiana, and approximately 610-mile offshore natural gas gathering and transportation system in the Gulf of Mexico with an inlet capacity of over 1,350 MMcf/d, including the Keathley Canyon Connector, approximately 210-mile deepwater lateral pipeline in the central deepwater Gulf of Mexico. Discovery's assets also include a crude oil production handling platform with a crude oil/NGL handling capacity of approximately 10 Mbbls/d and natural gas processing capacity of over 70 MMcf/d. It owns interest in a joint venture, Laurel Mountain that includes approximately 2,050-mile gathering system that it operates in western Pennsylvania with the capacity to gather over 0.7 Bcf/d of natural gas.
The Company owns interest in Caiman II, which owns interest in Blue Racer, a joint project to own, operate, develop and acquire midstream assets in the Utica Shale and certain adjacent areas in the Marcellus Shale. Blue Racer's assets include approximately miles of natural gas gathering pipelines, including over 420 miles of large-diameter pipelines, the Natrium complex in Marshall County, West Virginia, with a cryogenic processing capacity of approximately 400 MMcf/d and fractionation capacity of over 123,000 Bbls/d, the Berne complex in Monroe County, Ohio, with a cryogenic processing capacity of approximately 400 MMcf/d, and NGL and condensate pipelines connecting Natrium to Berne. It owns and operates interest in Overland Pass Pipeline Company LLC (OPPL). OPPL is capable of transporting approximately 250 Mbbls/d and includes over 1,100 miles of NGL pipeline extending from Opal, Wyoming, to the Mid-Continent NGL market center near Conway, Kansas, along with extensions into the Piceance and Denver-Julesberg basins in Colorado.
Williams NGL and Petchem Services
The Company's Williams NGL and Petchem Services segment consists of its Texas Belle pipeline and certain other domestic olefins pipeline assets. It also includes certain Canadian growth projects under development, including a propane dehydrogenation facility and a liquids extraction plant.
Williams Companies Inc
1 One Williams Ctr
TULSA OK 74172-0140
Company Web Links
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