US-based energy company Williams has closed the $423m deal to acquire the fully contracted natural gas pipeline and storage asset NorTex Midstream from an affiliate of private equity firm Tailwater Capital.

Under the deal, Williams’ subsidiary Williams Field Services Group has acquired NorTex assets including approximately 80 miles of natural gas transmission pipelines and 36 billion cubic feet of natural gas storage in the Dallas-Fort Worth market.

NorTex also owns and operates a natural gas hub in North Texas, named the Tolar Hub.

Williams expects the acquisition to improve its core natural gas pipeline and storage strategy.

In a press statement, Williams said: “The NorTex assets provide critical service to approximately 4GW of gas fired power generation, enabling Texas energy providers to successfully meet peak demands.”

Williams president and CEO Alan Armstrong said: “Serving one the fastest growing population centers in the United States, this irreplaceable natural gas infrastructure is critical to bridging the gap between limited supplies and periods of peak demand while supporting the viability of intermittent renewables like solar and wind.

“We see significant upsides to integrating these assets, especially when combined with our existing transmission and storage capabilities.”

Williams will use the acquisition to deliver storage services for Permian gas that is intended for the rising Gulf coast liquefied natural gas (LNG) demand.

Tailwater Capital co-founder and managing partner Edward Herring said: “The partnership exemplifies Tailwater’s approach to working alongside best-in-class management teams and leveraging our operational expertise to accelerate growth, unlock value, and support the transition to a low-carbon economy.”