Williams signs $5.5-billion deal to expand Haynesville natural gas infrastructure operations
Williams Cos. Inc. is expanding its Haynesville natural gas infrastructure operations through a signed deal to acquire Momentum Midstream (M6) from EnCap Flatrock Midstream for up to $5.5 billion.
Under the agreement, Williams will acquire 100% of Momentum Midstream for roughly $3.5 billion of cash and debt consideration and about $2 billion of Williams equity.
Momentum's Haynesville platform adds more than 4,000 miles of natural gas gathering and transmission pipelines supported by more than 1 million dedicated acres, delivering natural gas to key Gulf Coast regions including the Bethel, Carthage, and Silsbee hubs in east Texas and the Gillis hub in southwest Louisiana.
M6’s assets provide about 6 bcfd of system capacity, multiple processing and treating plants, and three take-or-pay pipelines capable of transporting 4.05 bcfd, serving over 140 customers including 34 industrial end-users, 26 power plants, 16 city gates, and 10 LNG plants.
Haynesville growth drives expansion strategy
On the company’s second-quarter earnings call, president and chief executive officer Chad Zamarin underscored the importance of the Haynesville basin, pointing to its role in "answering the near term call for natural gas, especially in order to supply the growth of LNG exports along our Gulf Coast Transco footprint.” He said the Momentum acquisition expands Williams’ reach into the Shelby Trough in western Haynesville, which the company views as a major future growth area with “incredibly deep upstream inventory” and a strong base of dedicated customers.
Williams also highlighted Gillis, La., as a key supply hub where Momentum’s NG3 system and Williams’ Louisiana Energy Gateway (LEG) system connect into Transco. Zamarin said Haynesville production will serve as the primary supply source for the company’s Line 200 project serving Woodside LNG, positioning the combined Williams-Momentum footprint to meet growing LNG and power demand along the Gulf Coast.
The acquisition, he said, creates a platform for additional expansion projects linking Haynesville supply with downstream markets.
The company plans to progress the Shelby Trough Connector, an expansion of the LEG system into the Shelby Trough area. The project is expected to provide 750 MMcfd of initial capacity with expansion potential up to 1.5 bcfd and includes a new lateral and additional compression infrastructure. In-service is expected in second-quarter 2028.
Delta Access, an expansion along the Transco corridor, will also serve the market. The $1.5-billion project will provide initial capacity of 2.25 bcfd, also with future expansion opportunities, Williams said. It is expected to come online in first-quarter 2029.