Williams Lands Momentum Midstream in $5.5 Billion Gulf Coast Gas Deal
US midstream company Williams has made a major move in the Gulf Coast gas supply market by acquiring Momentum Midstream for $5.5 billion. The deal, announced on August 3, combines the two companies' integrated gas transmission networks into a larger platform to meet growing demand from LNG terminals, power generators, and industrial customers.
The acquisition includes $3.5 billion in cash and assumed debt, as well as roughly $2 billion in Williams stock. Momentum's assets include over 4,000 miles of gathering and transmission pipelines that traverse more than 1 million dedicated acres and deliver gas to Gulf Coast markets through key hubs in East Texas and southwest Louisiana.
The acquired assets have nearly 6 Bcf/D of system capacity and serve over 140 customers, including 34 industrial end-users, 26 power plants, 16 city gates, and 10 LNG facilities. Williams' market outlook forecasts demand could increase as much as 20 Bcf/D over the decade.
The deal also includes Momentum's Haynesville Shale natural gas gathering and transmission assets acquired in September 2022, as well as its New Generation Gas Gathering (NG3) project, which provides 1.75 Bcf/D of gas transmission capacity to Gillis, Louisiana. The NG3 project also features a carbon capture and sequestration (CCS) program capable of handling up to 1.8 mtpa of CO2.