The Geismar olefins facility situated in Louisiana, US, produces about 1.3 billion pounds of ethylene and 90 million pounds of polymer grade propylene.
In addition, Williams Partners has also acquired Williams’ gulf region pipelines for $100m.
The company has issued its 42.8 million limited partnership units to Williams, $25m cash, and increased Williams’ general partner’s capital account to maintain Williams’ 2% general partner interest.
Williams Partners expects the acquisition will bring cash flow to the firm by meeting the increasing demand of ethylene in North America.
The company will be responsible for the completion of the expansion project of the olefins facility which is expected to cost about $270m and $160m for the additional pipelines.
Williams’ owns about 70% interest in Williams Partners which includes general partner interest.
