Williams Grows Legacy Pipeline Business and New Power Initiative

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Written by Danny Levin, Deputy Editor for IIR News Intelligence (Sugar Land, Texas)

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Summary

Williams is investing in its shift from a pure-play midstream pipeline operator to an integrated energy company that also will focus on providing natural gas for data centers, the company said Tuesday.

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Williams Companies' Transformation

Williams last year announced its new Power Innovation business unit, which, according to the company's 2025 proxy statement, is "focused on delivering turnkey power generation solutions for data center prospects across our footprint."

The company last year announced its first Power Innovation project: the two-phase Socrates (North and South) generation project underway in New Albany, Ohio. Designed to provide about 500 megawatts (MW) of natural gas and expected to come online in the second half of the year, the $1.6 billion project has a 10-year fixed-price power purchase agreement in place with Meta Platforms Incorporated for 440 MW of the output. The output would operate "behind-the-meter," in which it would be utilized on-site and not connected to the power grid.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can read more information on the Socrates North and South projects.

According to Williams' fourth-quarter and full-year 2025 earnings results and Analyst Day materials, Socrates now is one of a total four natural gas-generation projects accounting for $7 billion worth of capital investment. The projects are expected to come online by the end of 2028.

The company on Tuesday projected 2026 growth capital expenditures (capex) between $6.1 billion and $6.7 billion and maintenance capex between $850 million and $960 million, reflecting further investment in pipeline expansions and Power Innovation projects.

Williams' Pipeline Projects

Williams' high-profile projects include two natural gas pipelines through a newly-formed joint venture with Woodside Energy Group: Line 200 and Line 300 will supply the Louisiana LNG project in Sulphur, Louisiana. The lines are designed to transport up to 4.6 billion cubic feet per day (Bcf/d) of natural gas. Subscribers can read detailed reports on Line 200 and Line 300. Only Line 200, which is in the site preparation phase, will count toward 2026's capex.

Late last year, Williams acquired a 10% stake in Louisiana LNG, which now is about 20% complete, in exchange for 10% of its expected nameplate capacity for liquefied natural gas (LNG). The $1.9 billion investment also includes an 80% stake in the associated Driftwood Pipeline LLC, which will deliver feed gas to the facility and includes Line 200. Williams will be the full operator of Line 200.

Other pipeline projects that Williams expects will account for 2026 capex include two efforts on its Transco network, according to the Analyst Day presentation. The Northeast Supply Enhancement has received its final permits; it would carry natural gas from Pennsylvania through New Jersey into parts of New York City and Long Island. Meanwhile, Southeast Supply Enhancement, also in the permitting phase, involves constructing a line to carry natural gas to Virginia, the Carolinas, Georgia and Alabama. Subscribers can learn more by viewing the related project reports.

Williams said Tuesday it completed 1.1 Bcf/d of pipeline transmission projects in 2025, while another 7.1 Bcf/d of pipeline projects are currently in execution.

Earnings Results and Future Outlook

"As we look to 2026 and beyond, we are focused on delivering for shareholders through our position as the nation's natural gas infrastructure leader and our focus on reliable, affordable and clean energy infrastructure solutions," Chief Executive Officer Chad Zamarin said in the earnings press release.

"After five years of exceeding our earnings growth objectives and strong performance by our teams, we look forward to the next five years of opportunity and are excited to be so well positioned for even stronger performance, with many of the projects that will deliver the next five years of growth already commercialized and well underway."

Adjusted net income for full-year 2025 was $2.62 billion, up 10% from 2024. While the year saw adjusted earnings before interest, depreciation and amortization (EBITDA) of $7.75 billion, Zamarin announced 2026 guidance of $8.2 billion at the midpoint--as Williams realizes benefits from projects that came online last year, as well as expected revenues from initial output of the Socrates generation project.

Key Takeaways

• Building on its investment in natural gas pipelines and infrastructure, Williams also is investing in natural gas generation for data centers through its Power Innovation team.
• The company plans between $6.1 billion and $6.7 billion of growth capital in 2026.
• The investment is focused on its first power generation project and pipeline expansions.
• Williams provided a strong outlook for 2026 as new projects come online and natural gas demand remains high.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resource's Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).