CPPIB forms joint venture in Marcellus, Utica shales with Williams
Monday, March 25, 2019
The Canada Pension Plan Investment Board is forming a $3.8 billion joint venture with U.S. energy firm Williams Cos Inc, according to NASDAQ. The new entity will hold pipeline assets in the Marcellus and Utica shale plays.
CPPIB, Canada’s largest pension fund, will invest about $1.34 billion for a 35 percent stake in the venture, while Williams will hold the remained and operate the joint venture.
The companies said on Monday that the venture includes Williams’ Ohio Valley Midstream system in the Marcellus shale basin and the Utica East Ohio Midstream system.
Learn more: NASDAQ > CPPIB, Williams to form $3.8 bin Marcellus-Utica shale gas venture
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.