Williams Agrees to $5.5 Billion Deal for Momentum Midstream

Williams Cos. has agreed to buy Momentum Midstream LLC from EnCap Flatrock Midstream in a deal valued up to $5.5 billion, expanding its natural gas network along the US Gulf Coast.

The acquisition adds 4,000 miles of pipelines with a capacity of 6 billion cubic feet of gas a day, connecting the Haynesville area to LNG facilities, power plants and industrial customers along the Gulf Coast.

Williams will pay $3.5 billion in cash and debt consideration and about $2 billion in stock for the company, adding to its position in the Haynesville shale region of East Texas and northern Louisiana.

The US, already the world's top LNG exporter, is expected to roughly double its international shipments by the end of the decade after a wave of new terminals enters service in Texas and Louisiana.