Joint Venture to be formed by Williams and CPPIB on $3.8 Billion Marcellus-Utica Shale Gas

Canada Pension Plan Investment Board is joining with U.S. energy firm Williams Cos Inc. in a $3.8 billion joint venture to expand its presence in the North American natural gas market.

The joint venture includes Williams’ Ohio Valley Midstream system in the Marcellus shale basin and the Utica East Ohio Midstream system. Canada’s largest pension fund will have a 35 percent stake in the venture, with Williams holding the rest and operating the combined business, the companies said on Monday.

“This joint venture will provide CPPIB additional exposure to the attractive North American natural gas market, aligning with our growing focus on energy transition,” said Avik Dey, managing director, head of energy & resources, CPPIB.

Williams Cos Inc. holds pipeline assets in the Marcellus and Utica shale basins, the biggest gas-producing region in the United States.

Source:
reuters