US gas pipeline company Williams has completed the acquisition of natural gas storage assets from a Hartree Partners affiliate for $1.95bn.
The acquisition, which was announced last month, includes six underground storage facilities in the states of Louisiana and Mississippi, boasting a total capacity of 115 billion cubic feet (bcf) of natural gas.
It also includes 370.14km of gas transmission pipelines and 30 pipeline interconnects, which are expected to enhance access to key markets, including liquified natural gas (LNG) markets.
With this strategic move, Williams aims to bolster its presence in the natural gas market, offering increased storage options and better connectivity to meet growing demand.
The gas storage assets, comprising four salt dome storage facilities and two depleted reservoirs, add 92bcf and 23bcf to Williams’ capacity, respectively.
Williams said that these facilities have an injection capacity of 5bcf per day and a withdrawal capacity of 7.9bcf per day, placing its storage capabilities among the highest in the US market.
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It added that Pine Prairie and Southern Pines facilities have a direct connection to the Transco gas pipeline, which could boost Williams’ market reach and operational flexibility.
Williams president and CEO Alan Armstrong said: “Demand for natural gas has greatly outpaced natural gas storage capacity since 2010, demonstrating the intrinsic value this well-connected and strategically located Gulf Coast storage portfolio brings to our transportation network as we serve growing demand driven by LNG exports and power generation.
“With the acquisition now complete, we look forward to welcoming the Hartree team to Williams and integrating this premier storage platform into our suite of natural gas transportation and marketing services, while delivering additional value to our shareholders.”
In November 2023, Williams wrapped up two acquisitions, worth $1.27bn, strengthening its presence in the Denver-Julesburg Basin.