TULSA, Okla. ― Williams Partners LP agreed to acquire a pipeline system serving the prolific gas producing Marcellus Shale in north-east United States from Delphi Midstream Partners for $750 million.
The Tulsa Oklahoma-based pipeline operator will buy Laser Northeast Gathering system, comprised of 33 miles in Pennsylvania and 10 miles in Southern New York.
“As production in the Marcellus increases, the Laser system is expected to reach a capacity of 1.3 billion cubic feet per day,” the company said in a statement.
Williams Partners said it plans to fund the deal value with a combination of $300 million cash and about 7.5 million of its common units.
Earlier this month, the company’s Transco pipeline system was seeking approval for a capacity increase in northeast U.S.
Shares of Williams closed at $59.58 Wednesday on the New York Stock Exchange.