Included in the JV is an agreement between Williams and Brazos Midstream to pursue a residue gas solution in the Permian Basin that could potentially revitalize Williams’ proposed Bluebonnet pipeline. (Source: Hart Energy/Shutterstock.com)
The Williams Cos. Inc. (NYSE: WMB) is partnering with privately-held Brazos Midstream in a new Permian Basin joint venture (JV) partially aimed at alleviating the residue gas headache facing producers in the prolific basin, the companies said in a joint release Nov. 15.
The JV also comes as a recently updated U.S. production outlook by the Energy Information Administration saw little improvement for natural gas takeaway dynamics in the Permian Basin.
As a result, analysts with Tudor, Pickering, Holt & Co. (TPH) believe the roughly 2 billion cubic feet per day (Bcf/d) of annual residue gas growth in the Permian will maintain pressure on infrastructure despite greenfield capacity additions of 4 Bcf/d from Kinder Morgan Inc. (NYSE: KMI) Gulf Coast Express and Permian Highway projects.