Key facts
- Williams is in late-stage negotiations to acquire Momentum Midstream.
- The potential deal is valued at approximately $5.5 billion.
- Momentum Midstream operates a significant pipeline network in the Haynesville Shale.
- The acquisition would enhance Williams' capacity to serve U.S. LNG export terminals.
U.S. natural gas pipeline giant Williams is reportedly nearing a significant acquisition, engaging in late-stage discussions to purchase Momentum Midstream for an estimated $5.5 billion. This potential deal, which could be announced within weeks, would bolster Williams' presence in the rapidly expanding U.S. liquefied natural gas (LNG) export market.
Momentum Midstream, owned by private equity firm EnCap Flatrock Midstream, operates a comprehensive pipeline system within the Haynesville Shale. This infrastructure is crucial as it directly connects substantial drilling inventory to numerous gas-fired power plants, industrial facilities, petrochemical plants, and LNG export terminals along the U.S. Gulf Coast. Notably, Momentum's NG3 pipeline, spanning 250 miles, directly links the Haynesville to the key LNG demand hub in Gillis, Louisiana.
Collectively, Momentum Midstream manages approximately 4,000 miles of pipelines with a total system capacity of 6 billion cubic feet per day (Bcf/d). The company serves a diverse range of clients, including 34 industrial end users, 26 power plants, 16 city gates, and 10 LNG facilities.
If the acquisition proceeds, Williams, which already handles about one-third of the natural gas consumed daily in the U.S. across various regions, would gain enhanced access to the takeaway capacity from the Haynesville Shale, feeding into the growing demand from U.S. LNG export terminals. Williams' focus on gas-related strategies and expansion projects has recently contributed to record-high earnings, with a 25% year-over-year increase in net income in the first quarter.