Williams Cos. and Sempra Infrastructure have entered a non-binding heads of agreement (HOA) under which 500 MMcfd of natural gas will be sold on a delivered basis to a receipt point near Gillis, La., and 3 million tonnes/year (tpy) of LNG will be lifted in aggregate under separate offtake agreements from Sempra’s proposed 6.75-million tpy Cameron LNG Phase 2 and 13-million tpy Port Arthur LNG liquefaction projects. The companies described the HOA as establishing “the elements of an integrated platform” to connect Haynesville shale production to Gulf Coast and global natural gas markets.
Sempra and Williams plan to form a strategic joint venture to own, expand, and operate the 2.35-bcfd Cameron Interstate pipeline to deliver gas to Cameron LNG Phase 2 in Hackberry, La. Additional pipelines expected to be owned by the joint venture include the 2-bcfd Louisiana Connector pipeline to supply Port Arthur LNG in Port Arthur, Tex.
Louisiana Connector will use 72 miles of 42-in. OD pipe and a compressor station in Beauregard Parish, La. The US Federal Energy Regulatory Commission approved the pipeline in April 2019 and approved an extended timeline for implementation 3 years later (OGJ Online, Apr. 8, 2022).
These proposed transactions are intended to complement Williams’ recently sanctioned Louisiana Energy Gateway (LEG) 1.8-bcfd Haynesville gathering project, expected to go into service late 2024. LEG will use “real-time emissions monitoring and emissions reduction strategies,” according to Williams and also may incorporate carbon capture and storage (OGJ Online, June 29, 2022).