Williams to buy natural gas storage facilities, pipelines in Louisiana, Mississippi - 10/12 Industry Report
Williams to buy natural gas storage facilities, pipelines in Louisiana, Mississippi
Pipeline operator Williams Cos. agreed to buy natural gas storage assets from an affiliate of Hartree Partners LP for $1.95 billion in a bet on demand growth for the fuel in the U.S. and overseas markets, reports Bloomberg.
The deal includes six underground storage facilities in Louisiana and Mississippi, Williams said last week in a statement. The company will also get 230 miles of pipeline plus 30 interconnects.
As well as giving Williams storage connected to Transco, the biggest U.S. gas transmission conduit, the transaction positions Williams to gain from further expansion of the nation’s liquefied natural gas export industry.
The purchase adds to Williams’ investments in the Gulf Coast to service LNG exports, which includes the Louisiana Energy Gateway pipeline expansion. Williams also inked a non-binding agreement with LNG export developer Sempra in 2022, though it hasn’t yet finalized the deal. Read more.
Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.