Williams’ TXP4 Comes Online – Analyst Blog

Oklahoma-based Williams Partners L.P. (WPZ) announced the initiation of its operations on the fourth cryogenic processing train, TXP4, at the Echo Springs natural gas processing plant in Carbon County, Wyoming.

 

The TXP4 facility contributed approximately 350 million cubic feet per day (MMcf/d) of natural gas processing and 30,000 barrels of natural gas liquid (NGL) production per day. This almost doubled the plant’s production.

 

The partnership has commendably brought the facility into service two months ahead of schedule. It has also managed its finances prudently and kept the expansion well within the budget plan.

 

Moreover, Williams Partners, a subsidiary of Williams Companies Inc. (WMB), highlighted that gathered volumes have exceeded 475 MMcf/d and are expected to grow with producer drilling plans. This Echo Springs expansion will help in processing gas that is now bypassing the plant as well as expected third-party gas production.

 

Williams Partners’ Opal and Echo Springs processing plants in Wyoming, along with the newly operational TXP4 have a combined inlet capacity of more than 2.1 billion cubic feet per day (Bcf/d) of natural gas and 130,000 b/d of NGL production.

 

We believe Echo Springs will boost the patnership owing to its significant operations in the Rockies. Additionally, Williams Partners’ distribution growth potential is likely to improve going forward, on the sizeable portfolio of organic expansion projects around its midstream and pipeline assets.

 

We believe the partnership is well positioned with its large-scale midstream assets, which are cover the major producing basins of Colorado, New Mexico, Wyoming, the Gulf of Mexico, and the Marcellus shale in Pennsylvania . The partnership’s sizable project backlog as well as healthy distribution coverage adds to its list of positives.