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Williams Partners sells Louisiana petrochem plant to NOVA Chemicals

Williams Partners sells Louisiana petrochem plant to NOVA Chemicals

Apr 19, 2017
2 min read
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Williams Partners has agreed to sell its interests in the Geismar olefins plant in Louisiana to NOVA Chemicals for $2.1 billion.

Upon closing of the deal, Williams Partners subsidiaries will enter into long-term supply and transportation agreements with NOVA Chemicals to provide feedstock to the Geismar olefins plant via Williams Partners’ Bayou Ethane pipeline system in the U.S. Gulf Coast. These agreements secure a meaningful long-term fee-based revenue stream for the partnership.

The Williams Olefins transaction is expected to close in summer 2017.

“The Williams Olefins transaction and these announced new supply and transportation agreements fortify our focus on natural gas market fundamentals, reduce our commodity margin exposure and secure our fee-based Gulf Coast transportation business,” said Alan Armstrong, chief executive officer of Williams Partners’ general partner.

In a statement the firm said it 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 that are a part of the partnership’s extensive growth portfolio.

Armstrong added: “We now look forward to helping NOVA grow profitably here in the Gulf Coast by providing highly reliable feedstock supply via our recently expanded Bayou Ethane Pipeline network. This transaction allows both companies to pursue their focused strategies in a mutually beneficial manner.”

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