More in Store for Williams
From record production and pipeline volumes to export highs and mega mergers, U.S. oil and gas is mere days away from capping off a fascinating year. But don’t pop the cork to 2024 just yet. Last-minute deals are still ripe for the picking.
Reese Energy Consulting today is following the latest from Tulsa-based midstream giant Williams, which will add more meat to its natural gas bones along the Gulf Coast. Adding to its already significant presence in Texas, La., and Miss., Williams will now acquire a natural gas storage platform across the latter two states.
The $1.95 billion deal with an affiliate of Hartree Partners LP includes six underground storage facilities with a total capacity of 115 BCF, 230 miles of transmission pipeline, and 30 pipe interconnects. One of those connections belongs to Williams’ 9,700-mile Transco system, which extends from South Texas to NY. Two of the new storage facilities are connected to Transco. For Williams, the new purchase is a Goldilocks fit for a three-pronged Gulf Coast strategy. Let’s consider:
One, call it ready-set-go with stored gas supplies to feed the expanding LNG export market with more terminals in the queue. Venture Global last week proposed a new $20 billion LNG facility in Cameron Parish, La., with a project start date of March 31, 2024.
Two, further leverage Transco amid the burgeoning Electrification of Everything with gas storage capacity to meet growing loads from data centers along the pipeline’s corridor. And three, wave howdy to more markets adopting more renewables when daily peaks for natural gas increase the need for storage.