Williams Companies Set to Acquire Momentum Midstream in $5.5 Billion Deal
The proposed acquisition would add roughly 4,000 miles of pipeline and significantly boost Williams' capacity to move Haynesville natural gas to U.S. Gulf Coast LNG export terminals.
What Readers Should Know
- Williams Companies is in advanced negotiations to acquire Momentum Midstream for approximately $5.5 billion.
- Momentum Midstream is owned by private equity firm EnCap Flatrock Midstream, which could still choose to retain the company.
- The deal is reported to be in its final stages, with an announcement potentially coming within the week.
- Momentum operates ~4,000 miles of pipelines, serves 10 LNG facilities and 26 power plants, and has 2.3 Bcf/day of transport capacity.
- The acquisition would strengthen Williams' position in the U.S. LNG export market via Haynesville-to-Gulf Coast connectivity.
MONTREAL (Oil Monster): U.S.-headquartered natural gas major Williams Companies is set to acquire Momentum Midstream in a deal valued at around $5.5 billion. The proposed acquisition would significantly expand the company's natural gas transportation network and strengthen its position in the growing U.S. LNG market.
According to reports, the transaction is in the final stages of negotiation and could be announced within the next week.
Momentum Midstream is currently owned by private equity firm EnCap Flatrock Midstream. However, the deal has not been finalized, and EnCap could still decide to retain the company.
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Williams' Expanding Pipeline Footprint
Tulsa, Oklahoma-headquartered Williams operates more than 30,000 miles of natural gas pipelines across the United States. The company has been making substantial investments in expanding its pipeline network.
The acquisition would increase Williams' ability to transport natural gas from the Haynesville shale in East Texas and northern Louisiana to LNG export terminals along the U.S. Gulf Coast.
Momentum Midstream's Key Infrastructure
Momentum Midstream owns approximately 4,000 miles of pipelines serving 10 LNG facilities and 26 power plants. The company has a transportation capacity of 2.3 billion cubic feet per day, connecting Haynesville gas production with LNG facilities near Gillis, Louisiana.
Frequently Asked Questions About This Deal
How much is Williams paying for Momentum Midstream?
Williams Companies is in advanced talks to acquire Momentum Midstream for approximately $5.5 billion, according to reports. The deal has not yet been finalized.
Who owns Momentum Midstream?
Momentum Midstream is currently owned by private equity firm EnCap Flatrock Midstream. The firm could still choose to retain the company if a deal is not completed.
How many pipeline miles would Williams gain from this acquisition?
Momentum Midstream owns approximately 4,000 miles of pipelines. Williams currently operates more than 30,000 miles of natural gas pipelines across the United States.
What shale region does Momentum Midstream primarily serve?
Momentum Midstream connects natural gas production from the Haynesville shale in East Texas and northern Louisiana to LNG facilities near Gillis, Louisiana, on the Gulf Coast.
How many LNG facilities does Momentum Midstream serve?
Momentum Midstream's pipeline network currently serves 10 LNG facilities and 26 power plants, with a transport capacity of 2.3 billion cubic feet per day.