Williams closes gas storage acquisition
Pipeline operator Williams said January 3 it had closed its $1.95bn acquisition of US natural gas storage assets from an affiliate of Hartree Partners.
The transaction includes six underground natural gas storage facilities in Louisiana and Mississippi with a total capacity of 115bn ft3 and 230 miles of gas transmission pipeline with 30 interconnects, including to premium LNG markets and the Transco interstate pipeline system, the largest in the US.
“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,” Williams CEO Alan Armstrong said.
The six storage facilities include four salt domes with a total capacity of 92bn ft3and two depleted reservoirs with a combined capacity of 23bn ft3. Injection capacity of the six facilities is a combined 5bn ft3/day, while withdrawal capacity is rated at 7.9bn ft3/day, Williams said.