Williams, CPPIB to Form $3.8B Shale Gas JV

Williams, CPPIB to Form $3.8B Shale Gas JV
Canada Pension Plan Investment Board and Williams have entered into a long-term partnership that will help Williams optimize its midstream operations in the western Marcellus and Utica basins.

Williams and Canada Pension Plan Investment Board (CPPIB) have entered into an agreement to create a $3.8 billion joint venture which will expand CPPIB’s exposure in the North American natural gas market.

CPPIB will invest $1.34 billion into the joint venture, which will give it 35 percent ownership. The joint venture will include Williams’ owned Ohio Valley Midstream system and its newly fully-owned Utica East Ohio (UEO) Midstream system.

“This joint venture will provide CPPIB additional exposure to the attractive North American natural gas market, aligning with our growing focus on energy transition,” Avik Dey, managing director, Head of Energy and Resources for CPPIB,” said in a company statement. “The joint venture complements our recent investment in Encino Acquisition Partners, an anchor customer on UEO and other Williams gathering assets. Through these unique operations in highly attractive basins, we will further our strategy to establish U.S. midstream exposure alongside highly regarded and experienced operating partners such as Williams.”

Williams’ CEO Alan Armstrong believes the joint venture will advance an “already strong position in the Northeast.”

CPPIB’s investment in the joint venture is expected to occur in the second or third quarter of 2019.


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