LNG

Williams, the US pipelines company and growing LNG sector participant, has closed the acquisition of MountainWest Pipelines Holding Company from Southwest Gas Holdings in a deal worth $1.5 billion and for a network covering three states.

Williams paid $1.07Bln in cash and $430 million of assumed debt for the MountainWest system

It comprises around 2,000-miles of interstate natural gas pipelines primarily located across Utah, Wyoming and Colorado.

The MountainWest pipelines carry 8 billion cubic feet per day of transmission capacity.

MountainWest also operates 56 Bcf of total storage capacity, including the Clay Basin underground storage reservoir, providing working gas to Western markets.

With the acquisition of MountainWest, Williams expands its infrastructure network and increases its business mix of Federal Energy Regulatory Commission-regulated natural gas transmission and storage.

Williams said the acquisition starts up the company’s services in the key Rockies gas markets, including natural gas delivery into Salt Lake City and other demand markets not previously served by Williams.

Natural gas focus

“Our natural gas focused strategy is anchored in having the right assets in the right places to serve our nation’s growing demand for clean, affordable and abundant natural gas,” said Alan Armstrong, the President and Chief Executive of Tulsa, Oklahoma-based Williams.

“This acquisition enhances our position in the Western US and is complementary to our current footprint, providing us with infrastructure for natural gas deliveries across key demand markets,” explained Armstrong.

“With the acquisition now complete, we look forward to welcoming MountainWest employees to Williams and bringing value to our shareholders by delivering safe and reliable services to both Williams and MountainWest customers as we increase the utilization of our existing large-scale platforms,” added the CEO.

Williams is also expanding its LNG activities and in mid-November 2022 said it had entered into a non-binding heads of agreement with Sempra Infrastructure, a subsidiary of California utility Sempra, to further connect the Haynesville shale basin to growing LNG export demand along the Gulf Coast .

The accord contemplates long-term gas sales of about 0.5 billion cubic feet per day delivered to near Gillis, Louisiana, and two LNG offtake agreements for around 3 million tonnes per annum in the aggregate from Sempra Infrastructure’s proposed Cameron LNG expansion and Port Arthur LNG project in Texas.

Williams said these proposed Sempra transactions complement the recently sanctioned low-carbon Louisiana Energy Gateway gathering project.

Williams, the US natural gas and energy pipelines company with growing LNG interests, has reached an agreement to acquire MountainWest Pipelines Holding Company from Southwest Gas Holdings in a deal valued at $1.5 billion.