Williams Acquires Natural Gas Storage, LNG Export Portfolio for $1.95B

Published on: January 2, 2024

Williams has purchased interstate pipelines and LNG terminals, as well as six natural gas storage facilities across Louisiana and Mississippi.

Williams has signed an acquisition agreement with an affiliate of Hartree Partners LP for a portfolio of natural gas pipeline and export assets worth $1.95 billion. The purchase agreement includes six underground natural gas storage facilities in Louisiana and Mississippi with a total capacity of 115 billion cubic feet (Bcf). In addition to subterranean storage sites, Williams acquired 230 miles of gas transmission pipeline and 30 pipeline interconnects to large LNG markets.

The natural gas storage facilities feature four salt domes with a combined capacity of 92 Bcf and two exhausted reservoirs with a total capacity of 23 Bcf. Williams’ acquired storage facilities have an injection capacity of 5 Bcf/d and a withdrawal capacity of 7.9 Bcf/d. The Pine Prairie and Southern Pines storage facilities are directly connected to the Transco natural gas transmission pipelines, with possibility for expansion.

“This natural gas storage platform on the Gulf Coast fits squarely within our strategy to own and operate assets connected to markets to serve growing demand driven by LNG exports and power generation,” said Alan Armstrong, President and Chief Executive Officer, Williams. “These assets better position Williams’ natural gas storage operations to serve Gulf Coast LNG demand and growing electrification loads from data centers along the Transco corridor. Importantly, this storage will also allow us to provide value to customers in markets with growing renewables adoption as daily peaks for natural gas increases the need for storage. Since 2010, U.S. demand for natural gas has grown by 56% while gas storage capacity has only increased 12%.”

This transaction is scheduled to close in January of 2024, following the completion of customary closing conditions and the expiration of an applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Interstate pipelines and LNG export terminals are expected to drive earnings growth for Williams.