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Released December 29, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Oil and gas pipeline developer Williams Companies Incorporated (NYSE:WMB) (Tulsa, Oklahoma) has reached an agreement to acquire a portfolio of natural gas storage assets along the U.S. Gulf Coast from Hartree Partners (New York, New York) for $1.95 billion. The portfolio includes six underground natural gas storage facilities in Louisiana and Mississippi, as well as 230 miles of gas transmission pipeline and 30 pipeline interconnects, that will help meet liquefied natural gas (LNG) demand on the Gulf Coast and power data centers along Williams' Transcontinental (Transco) interstate pipeline network.
The six natural gas storage facilities have a total capacity of 115 billion cubic feet (Bcf), consisting of four salt domes with a combined capacity of 92 Bcf and two depleted reservoirs with a combined 23 Bcf, Williams said in a press release. The facilities have injection capacity of 5 billion cubic feet per day (Bcf/d) and withdrawal capacity of 7.9 Bcf/d, among the highest of any natural gas storage platform in the U.S., Williams added.
Williams named just two of the storage facilities it acquired, noting both "are directly connected with Transco and are well positioned for expansions." The Pine Prairie facility is in Ville Platte, Louisiana, and the Southern Pines facility is in Mississippi. Subscribers to Industrial Info's Global Market Intelligence (GMI) Terminals Plant Database can click here to read more information on the two facilities.
The transaction is expected to close in January 2024.
"This premier natural gas storage platform on the Gulf Coast fits squarely within our strategy to own and operate the best assets connected to the best markets to serve growing demand driven by LNG exports and power generation," said Alan Armstrong, the chief executive officer of Williams, in a recent press release. "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."
Originally placed into service in 1949, the Transco pipeline is an approximately 10,200-mile natural gas transportation system that extends from south Texas to New York City, transporting about 15% of the natural gas consumed in the U.S. The system includes an 1,800-mile mainline originating in south Texas.
The latest acquisition is another in a series of such activities from Williams aimed at boosting its gas pipeline network. In 2022, Williams closed on the acquisition of assets from Trace Midstream (Houston, Texas), which included a long-term capacity commitment from a Trace customer in support of the Louisiana Energy Gateway (LEG) pipeline project, which is on track to be completed by the end of 2024. The LEG project will gather 1.8 Bcf/d of natural gas produced in the Haynesville basin, which covers parts of Arkansas, Louisiana and Texas, for delivery to Williams' Transco and Mainstay pipeline systems. In addition, the LEG project could provide producers in the Haynesville with access to LNG export plans along the Texas and Louisiana Gulf Coast.
Industrial Info is tracking three projects attributed to LEG, including a 30-mile, $30 million pipeline in western Louisiana as well as new compressor stations near DeRidder and Bethany, Louisiana. Subscribers to the GMI Pipelines Project Database can read detailed reports on the pipeline, DeRidder and Bethany projects.
The company has also acquired other companies. Williams purchased about 80 miles of natural gas transmission pipeline and 36 billion cubic feet of natural gas storage in the Dallas-Fort Worth market from NorTex Midstream (Houston) for $423 million, and spent about $1 billion to acquire MountainWest Pipelines Holding Company from Southwest Gas Holdings Incorporated (NYSE:SWX) (Las Vegas, Nevada). The MountainWest acquisition includes roughly 2,000 miles of interstate natural gas pipeline systems, mostly across Utah, Wyoming and Colorado, totaling approximately 8 billion cubic feet per day of transmission capacity and 56 billion cubic feet of storage capacity.
Industrial Info is tracking $2.9 billion worth of active projects from Williams, which includes the Texas to Louisiana Energy Pathway--an expansion of the Transco pipeline's capacity in Texas and Louisiana to carry Haynesville shale gas to serve the growing LNG export market and support reliability and diversification of energy infrastructure along the Gulf Coast. The expansion consists mostly of work to build new compressor stations or modify existing ones, and no new pipe construction is needed. Industrial Info is tracking construction of a new compressor station (Station 33) in Fort Bend County, Texas, outside of Houston, as well as three modification projects--at stations in Sour Lake (west of Beaumont), Victoria (north of Corpus Christi) and El Campo (also outside of Houston). All components are expected to begin construction next year, with completion a year later. Click here for the related project reports.
On Williams' third-quarter earnings conference call, Armstrong said the company wrapped up the first phase of the Regional Energy Access (REA) expansion of the Transco pipeline in New Jersey, Pennsylvania and Maryland well ahead of schedule and placed it in service in late October. The first phase will provide about half of its planned 830 million standard cubic feet per day of natural gas from the Marcellus and Utica shale plays to customers. The second and final phase is on track to be in service in the fourth quarter of 2024, he added. Click here for a full list of detailed reports on remaining projects in the REA expansion.
Click here for a full list of reports for active or proposed projects from Williams.
Subscribers to the GMI database can click here for project reports mentioned in this article.
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 200,000 current and future projects worth $17.8 Trillion (USD).
The six natural gas storage facilities have a total capacity of 115 billion cubic feet (Bcf), consisting of four salt domes with a combined capacity of 92 Bcf and two depleted reservoirs with a combined 23 Bcf, Williams said in a press release. The facilities have injection capacity of 5 billion cubic feet per day (Bcf/d) and withdrawal capacity of 7.9 Bcf/d, among the highest of any natural gas storage platform in the U.S., Williams added.
Williams named just two of the storage facilities it acquired, noting both "are directly connected with Transco and are well positioned for expansions." The Pine Prairie facility is in Ville Platte, Louisiana, and the Southern Pines facility is in Mississippi. Subscribers to Industrial Info's Global Market Intelligence (GMI) Terminals Plant Database can click here to read more information on the two facilities.
The transaction is expected to close in January 2024.
"This premier natural gas storage platform on the Gulf Coast fits squarely within our strategy to own and operate the best assets connected to the best markets to serve growing demand driven by LNG exports and power generation," said Alan Armstrong, the chief executive officer of Williams, in a recent press release. "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."
Originally placed into service in 1949, the Transco pipeline is an approximately 10,200-mile natural gas transportation system that extends from south Texas to New York City, transporting about 15% of the natural gas consumed in the U.S. The system includes an 1,800-mile mainline originating in south Texas.
The latest acquisition is another in a series of such activities from Williams aimed at boosting its gas pipeline network. In 2022, Williams closed on the acquisition of assets from Trace Midstream (Houston, Texas), which included a long-term capacity commitment from a Trace customer in support of the Louisiana Energy Gateway (LEG) pipeline project, which is on track to be completed by the end of 2024. The LEG project will gather 1.8 Bcf/d of natural gas produced in the Haynesville basin, which covers parts of Arkansas, Louisiana and Texas, for delivery to Williams' Transco and Mainstay pipeline systems. In addition, the LEG project could provide producers in the Haynesville with access to LNG export plans along the Texas and Louisiana Gulf Coast.
Industrial Info is tracking three projects attributed to LEG, including a 30-mile, $30 million pipeline in western Louisiana as well as new compressor stations near DeRidder and Bethany, Louisiana. Subscribers to the GMI Pipelines Project Database can read detailed reports on the pipeline, DeRidder and Bethany projects.
The company has also acquired other companies. Williams purchased about 80 miles of natural gas transmission pipeline and 36 billion cubic feet of natural gas storage in the Dallas-Fort Worth market from NorTex Midstream (Houston) for $423 million, and spent about $1 billion to acquire MountainWest Pipelines Holding Company from Southwest Gas Holdings Incorporated (NYSE:SWX) (Las Vegas, Nevada). The MountainWest acquisition includes roughly 2,000 miles of interstate natural gas pipeline systems, mostly across Utah, Wyoming and Colorado, totaling approximately 8 billion cubic feet per day of transmission capacity and 56 billion cubic feet of storage capacity.
Industrial Info is tracking $2.9 billion worth of active projects from Williams, which includes the Texas to Louisiana Energy Pathway--an expansion of the Transco pipeline's capacity in Texas and Louisiana to carry Haynesville shale gas to serve the growing LNG export market and support reliability and diversification of energy infrastructure along the Gulf Coast. The expansion consists mostly of work to build new compressor stations or modify existing ones, and no new pipe construction is needed. Industrial Info is tracking construction of a new compressor station (Station 33) in Fort Bend County, Texas, outside of Houston, as well as three modification projects--at stations in Sour Lake (west of Beaumont), Victoria (north of Corpus Christi) and El Campo (also outside of Houston). All components are expected to begin construction next year, with completion a year later. Click here for the related project reports.
On Williams' third-quarter earnings conference call, Armstrong said the company wrapped up the first phase of the Regional Energy Access (REA) expansion of the Transco pipeline in New Jersey, Pennsylvania and Maryland well ahead of schedule and placed it in service in late October. The first phase will provide about half of its planned 830 million standard cubic feet per day of natural gas from the Marcellus and Utica shale plays to customers. The second and final phase is on track to be in service in the fourth quarter of 2024, he added. Click here for a full list of detailed reports on remaining projects in the REA expansion.
Click here for a full list of reports for active or proposed projects from Williams.
Subscribers to the GMI database can click here for project reports mentioned in this article.
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 200,000 current and future projects worth $17.8 Trillion (USD).
