Cabot sells midstream assets
BY LAURA LEGERE
Cabot Oil and Gas Corp. is selling its midstream assets in Susquehanna County to Williams Partners, an Oklahoma-based natural gas transportation company, for $150 million.
The deal, which is expected to be completed by the end of the year, will include the sale of Cabot’s 75 miles of gathering pipelines and two compressor stations. It will also establish a 25-year gathering agreement between the companies under which Williams will build two additional compressor stations and miles of new trunk, gathering and high-pressure pipelines in the county in the next two years – a construction project worth more than $150 million.
The expanded system will be able to deliver about 1.2 billion cubic feet per day of natural gas from Cabot’s wells over the next two to three years.
In a statement, Cabot CEO Dan O. Dinges said the agreement will create more takeaway capacity than Cabot had planned to develop in the next five years.
The deal calls for Williams to build a 32-mile high-pressure pipeline from the Lathrop compressor station in Springville Twp. to the interstate Transco pipeline in Luzerne County, 65 miles of trunk lines, and two compressor stations with a total of 40,000 horsepower in the next two years.
Over the 25-year agreement, which covers 138,000 acres, Williams will also connect all of Cabot’s wells with gathering lines and transport its gas to five interstate pipeline delivery points.