MOUNDSVILLE – Just when it looked like the $20 billion MarkWest Energy acquisition was a big deal, fellow natural gas processor Williams Energy will be sold to Energy Transfer Equity for a total purchase package valued around $37.7 billion.

“As a combined company, we will have enhanced prospects for growth, be better able to connect our customers to more diverse markets and have more stability in an environment of low commodity prices,” Williams President and CEO Alan Armstrong said. “Williams’ intense focus on connecting the best natural gas supplies to the best natural gas markets will be a significant complement to the Energy Transfer Equity family of diverse energy infrastructure.”

Tulsa, Okla.-based Williams operates a pipeline and processing infrastructure network in Marshall County, while maintaining a large field office in Moundsville. Natural gas is pumped via pipeline from well sites to the Fort Beeler and Oak Grove sites. Once at these plants, the gas goes through several refining steps to strip the dry methane from wet gases. The methane is then pumped to an interstate pipeline to be sent to market as natural gas. De-ethanizers remove the ethane from the gas streams at Fort Beeler and Oak Grove, while the butane, propane and pentanes are piped to the Moundsville fractionator for further processing.

The combination of Williams and Dallas-based Energy Transfer will create the third largest energy franchise in North America and one of the five largest global energy companies, the firms believe.

“I am excited that we have now agreed to the terms of this merger with Williams. I believe that the combination of Williams and Energy Transfer Equity will create substantial value for both companies’ stakeholders that would not be realized otherwise,” ETE Chairman Kelcy Warren said.

Caiman Energy built most of the Fort Beeler plant and began construction on the Moundsville facility before selling these assets to Williams for $2.5 billion in early 2012. Since that time, Williams has at least doubled that investment to expand the Marshall County infrastructure.

“After a comprehensive evaluation of strategic alternatives, including extensive discussions with numerous parties, the Williams board of directors concluded that a merger with Energy Transfer Equity is in the best interests of Williams’ stockholders and all of our other stakeholders. The merger provides Williams stockholders with compelling value today as well as the opportunity to benefit from enhanced growth projects,” Williams Chairman Frank MacInnis added.