Cabot, Williams Form Joint Venture to Move Marcellus Gas

Cabot, Williams Form Joint Venture to Move Marcellus Gas

Cabot Oil & Gas Corp. and Williams
Partners LP formed a joint venture to develop and build a
pipeline that would move at least 500 million cubic feet of
natural gas a day from the Marcellus formation in Pennsylvania.
Williams will own 75 percent of the system, scheduled to be
operating in March 2015, according to a statement today. The
pipeline will run from Cabot’s acreages in Susquehanna County,
Pennsylvania, to pipelines in Schoharie County, New York.
“This pipeline is truly the next big step of our capacity
expansion program and positions us with access to the premium
New England and New York marketplace that has historically been
constrained from both a lack of reliable supply and pipeline
infrastructure,” Dan O. Dinges, chairman and chief executive
officer of Houston-based Cabot, said in the statement.
The Marcellus shale formation, which stretches from Canada
to Kentucky, holds an estimated 141 trillion cubic feet of gas,
the U.S. Energy Department said on Jan. 23.
The announcement was made before the start of regular
trading on U.S. markets. Cabot rose 5 percent to $38.46 at 8:36
a.m. New York. Williams, a Tulsa, Oklahoma-based master-limited
partnership, fell 0.3 percent to $61.70 on Feb. 17.