LNG News Editor:
Williams Companies, the US natural gas pipelines and assets operator, has agreed a $950 million deal to expand its East Texas presence in the Haynesville Shale and giving more access to Gulf Coast LNG markets.
The Williams deal acquires the Haynesville gathering and processing assets of Trace Midstream, a portfolio company of Quantum Energy Partners.
Supply basins
Williams, based in Tulsa, Oklahoma, is engaged in natural gas and liquids gathering, processing, interstate transportation and storage and with major positions in main US supply basins.
“The combined Williams and Trace assets provide expanded scale in one of the largest growth basins in the country, increasing the company’s gathering capacity in the Haynesville basin from 1.8 billion cubic feet per day to over 4 Bcf per day,” said Williams.
Williams also benefits from additional volumes committed to its Louisiana Energy Gateway project, designed to gather gas in the Haynesville and connect to markets, including the Transcontinental Gas Pipe Line (Transco) and LNG exports.
The transaction includes a memorandum of understanding signed to form a joint venture partnership with Quantum Energy Partners in support the construction of the Louisiana Energy Gateway.
Williams explained that as another part of the transaction, a Trace customer and Quantum affiliate, Rockcliff Energy, has agreed to a long-term capacity commitment in support of the company Louisiana Energy Gateway project.
The project is designed to gather responsibly-sourced natural gas produced in the Haynesville and connect it to premium Transco markets, as well as growing industrial and LNG export demand along the Gulf Coast.
“We are excited for the opportunity to help Rockcliff continue their success and connect them to growing markets with Quantum as our new partner,” said Alan Armstrong, the Williams President and Chief Executive.
