Published by Todd Bush on December 27, 2023
Six natural gas storage facilities with total capacity of 115 Bcf across Louisiana and Mississippi
Highly contracted business with diverse customer base including investment-grade utilities, interstate pipelines, LNG terminals and natural gas marketers
Strategically located to take advantage of strong LNG and power demand fundamentals that are forecasted to drive earnings growth
December 27, 2023 08:15 AM Eastern Standard Time
TULSA, Okla.--(BUSINESS WIRE)--Williams (NYSE: WMB) today announced that it has reached an agreement to acquire a portfolio of natural gas storage assets from an affiliate of Hartree Partners LP for $1.95 billion. The transaction includes six underground natural gas storage facilities located in Louisiana and Mississippi with total capacity of 115 billion cubic feet (Bcf), as well as 230 miles of gas transmission pipeline and 30 pipeline interconnects to attractive markets, including LNG markets, and connections to Transco, the nation’s largest natural gas transmission pipeline. The acquisition price represents an approximate 10x estimated 2024 EBITDA multiple.
“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 Williams President and Chief Executive Officer Alan Armstrong. “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. Since 2010, U.S. demand for natural gas has grown by 56% while gas storage capacity has only increased 12%. We expect the increasing demand for high deliverability storage to drive significant earnings growth across these assets.”
>> Additional Reading: Williams Executes Agreement with Chattanooga Gas for Delivery of Full-Value Chain, Certified Low Emission NextGen Gas
The six natural gas storage facilities include four salt domes with combined capacity of 92 Bcf and two depleted reservoirs with combined capacity of 23 Bcf. The facilities have injection capacity of 5 Bcf/d and withdrawal capacity of 7.9 Bcf/d, among the highest of any natural gas storage platform in the United States. Two of the facilities, Pine Prairie and Southern Pines, are directly connected with Transco and are well positioned for expansions.
The transaction is expected to close in January 2024, following satisfaction of customary closing conditions, including the expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
BofA Securities served as financial advisor to Williams; Davis Polk & Wardwell LLP served as legal advisor to Williams. Evercore served as lead financial advisor and Wells Fargo Securities, LLC served as financial advisor to Hartree; Milbank LLP served as legal advisor to Hartree.
Williams (NYSE: WMB) is a trusted energy industry leader committed to safely, reliably, and responsibly meeting growing energy demand. We use our 33,000-mile pipeline infrastructure to move a third of the nation’s natural gas to where it's needed most, supplying the energy used to heat our homes, cook our food and generate low-carbon electricity. For over a century, we’ve been driven by a passion for doing things the right way. Today, our team of problem solvers is leading the charge into the clean energy future – by powering the global economy while delivering immediate emissions reductions within our natural gas network and investing in new energy technologies. Learn more at www.williams.com.
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Inside This Issue 💰 OnStream Receives $26 Million in Federal Funding for Louisiana Offshore Carbon Storage Hub Development and Announces Joint Venture Partnership with Major Midstream Company 🌍 Ex...
Inside This Issue 🌍 EDF Group and Abraxas Power Corp. Announce Strategic Partnership for the Exploits Valley Renewable Energy Corporation Green Hydrogen and Ammonia Project in Newfoundland 💧 Hydro...
Inside This Issue 🌍 Technip Energies and Shell Catalysts & Technologies Join Forces to Advance Carbon Capture Solutions ⚡ FuelCell Energy Announces Global Restructuring, Focusing Core Technolo...
'Project Concho' Combines Proven DAC Technology, New Local Wind Power And Texas' Carbon Storage Capacity SAN ANGELO, Texas, Nov. 21, 2024 /PRNewswire/-- Carbon capture and removal project develope...
Clean Hydrogen Works Awards McDermott FEED Contract for Ascension Clean Energy (ACE) Project
THE WOODLANDS, Texas, & HOUSTON-- Clean Hydrogen Works (CHW) and McDermott announce that CHW has awarded McDermott the front-end engineering and design (FEED) contract for the Ascension Clean E...
xStorage battery energy storage system helps maximize onsite renewables, reduce energy costs and decarbonize power systems Eaton’s national network of engineers, digital monitoring and managem...
Sustainability leaders can pioneer the new program by joining the limited pilot launch ST. LOUIS--(BUSINESS WIRE)-- Bayer announced today an expanded approach to its programs that sequester carbon...
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.