Boston, MA 05/07/2014 (wallstreetpr) – Williams Companies, Inc. (NYSE:WMB) is a $30 billion energy infrastructure company that also operates ethane cracker facility at Geismar. The company is keen on expanding its ethylene production capacity and seeks to bring more partners on board for the project.
The company already has an ethane cracker complex in Geismar and expects to construct another complex in the area to be its Geismar 2 ethylene production complex. As such, the company is on the lookout for one or two partners with which it can undertake the project whose production is expected to not only generate higher revenue for the investors, but also meet the ethylene market demand that is currently underserved.
According to John Dearborn, NGL senior vice president at Williams, the company is out there in the market trying to assess potential investment participants in the planned Geismar 2 facility.
Williams Companies, Inc. (NYSE:WMB) has not disclosed the amount of money required to complete the project. Also, lacking are the details about the production capacity of the facility.
However, according to experts, there is increasing demand for ethylene and the environment of low-cost natural gas makes it attractive for Williams Companies, Inc. (NYSE:WMB) to consider a second ethane cracker complex.
Talk about demand and experts say that taking the case of Louisiana, the current production of ethylene is about 12 billion pounds annually, yet the region’s demand is in excess of 16 billion pounds annually. Moreover, many more markets are looking for the commodity that means a big opportunity for ethane cracker investment.
Getting partners
Williams Companies, Inc. (NYSE:WMB) is not likely to face a big challenge in getting an investment partner for the Geismar 2 complex. In any case, the company provides a mix of capabilities such as experience in ethane cracker operations that will benefit any potential partner in the project.
Plant accident
Williams Companies, Inc. (NYSE:WMB) is scheduled to restart its Geismar 1 complex next month after nearly a year of shutdown. The ethane complex was impacted last June where deaths and injuries were reported. About $500 million was used to repair and expand the facility, and it is ready for reopening with an estimated annual production capacity of 1.95 billion pounds of ethylene.
