Under the terms of the restructure Williams will contribute its gas pipeline and domestic midstream businesses to Williams Partners.

The gas pipeline assets Williams will contribute to Williams Partners include 100 per cent of Transcontinental Pipe Line Company, 65 per cent of Northwest Pipeline, and 24.5 per cent of Gulfstream Pipeline.

Williams will also contribute its limited and general partner interests in existing limited partnership Williams Pipeline Partners, which currently holds a 35 per cent interest in Northwest Pipeline to Williams Partners.

Following the restructure, Williams Partners is expected to be self funding with its own retained cash flow and enhanced access to debt and equity markets.

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Williams Partners intends to make an exchange offer for the publicly held units of Williams Pipeline Partners upon the successful conclusion of the transactions.

As consideration for the pipeline and midstream assets, Williams will retain its 2 per cent general interest in Williams Partners and receive approximately $US3.5 billion in cash proceeds, as well as 203 million Williams Partners limited partner shares.

Williams Chief Executive Officer Steve Malcolm said “The goal of this strategic restructuring is simple: drive more value-creating growth across our natural gas businesses.”