Williams, Caiman Form Utica JV

Williams Partners L.P. (WPZ) today announced it will be a funding partner in a joint venture with Caiman Energy II to develop midstream infrastructure serving oil and gas producers in the Utica Shale.

Williams Partners, EnCap Flatrock Midstream of San Antonio, Highstar Capital of New York, and Caiman management anticipate investing approximately $800 million to develop natural gas, natural gas liquid and crude oil gathering and processing infrastructure. The area of focus will be the natural gas liquid- and oil-rich areas of the Utica Shale in Ohio and northwest Pennsylvania. Williams Partners’ anticipated share of the $800 million in potential development is approximately $380 million over the next several years.

“This new midstream venture can leverage the commercial relationships and success of Caiman’s management and investors, along with Williams Partners’ long experience in successfully constructing and reliably operating large-scale midstream infrastructure,” said Alan Armstrong, chief executive officer of Williams Partners’ general partner.

“Our producer customers will benefit from introducing the kind of comprehensive large-scale midstream solutions to the area that will make their positions in the liquids- and oil-rich Utica Shale even more valuable,” Armstrong said.