By TESS STYNES
Williams plans to spend about C$500 million to C$600 million to fund a new liquids extraction plant and supporting facilities amid a new long-term gas processing agreement with a producer in the Canadian oil sands.
Williams said on Wednesday that the project will expand its presence in oil-sands gas processing in Canada, as well as further reduce emissions associated with customers' oil-sands production.
Williams said the 2012 to 2014 portions of the spending for the project were included in its guidance during August.
The project also includes an extension of its Boreal Pipeline to transport the natural-gas liquids/olefins mixtures to Williams' expanded facility outside Edmonton. The NGL/olefins will be converted into products including ethane/ethylene mix and propane.
The name of the Canadian oil sands producer wasn't disclosed.
Williams said its offgas processing method captures and processes a rich NGL/olefins mixture that would normally be burned by the oil sands producer.
The producer instead burns methane that Williams provides in exchange for the NGL/olefins mixture.
Dow Jones Newswires