Williams, Sempra Enter Deal to Develop LNG, Pipeline Projects in Texas and Louisiana
(P&GJ) — Williams has entered into an agreement with Sempra Infrastructure to establish the elements of an integrated platform to further connect the prolific Haynesville Basin to growing LNG export demand along the Gulf Coast and around the world.
As part of the proposed transaction, Williams and Sempra Infrastructure plan to form a strategic joint venture to own, expand and operate the Cameron Interstate Pipeline that is expected to deliver natural gas to the proposed Cameron LNG Phase 2 in Hackberry, Louisiana. Additional pipelines are also expected to be owned by the joint venture, including the Louisiana Connector Pipeline expected to deliver natural gas to Sempra Infrastructure’s proposed Port Arthur LNG facility, located in Port Arthur, Texas.
“We are excited to continue advancing our U.S. Gulf Coast LNG and associated pipeline projects as we work to help satisfy a growing global demand for cleaner, more reliable energy sources,” said Justin Bird, CEO of Sempra Infrastructure. “We look forward to advancing our relationship with Williams, a like-minded company that shares our commitment to building a future of energy abundance, affordability and security.”
The agreement contemplates long-term gas sales of approximately 0.5 billion cubic feet per day (Bcf/d) delivered near Gillis, Louisiana, and two LNG offtake agreements for approximately 3 million tons per annum (MTPA) in the aggregate from Sempra Infrastructure’s proposed Cameron LNG Phase 2 and Port Arthur LNG projects. These proposed transactions complement Williams’ recently sanctioned low-carbon Louisiana Energy Gateway (LEG) gathering project and are expected to include connections to pipelines serving Sempra Infrastructure’s LNG export facilities.
“Facilitating the delivery of next generation natural gas to ease energy constraints at home and overseas, while also helping to meet domestic and global climate goals, is central to our natural gas focused strategy, and we look forward to being well aligned with Sempra Infrastructure’s unique capabilities and competitive advantages in the LNG infrastructure space," Alan Armstrong, president and CEO of Williams, said.
Williams’ LEG project, which is expected to go into service in late 2024, will gather 1.8 Bcf/d of natural gas produced in the Haynesville basin. Williams, through partnerships with Context Labs, Encino Environmental and Satlantis, is integrating technology solutions into the project to enable the measurement of end-to-end, verifiable and transparent emissions data to demonstrate the low carbon benefits of produced and delivered Haynesville natural gas. Williams is also exploring the enhancement of the LEG project with the addition of carbon capture and storage infrastructure that will further decarbonize the natural gas value chain.
Related News
Related News
- Poland Detects Leak in Russia's Druzhba Oil Pipeline
- Energy Transfer to Buy Crestwood in $7.1 Billion Pipeline Deal
- Magellan Midstream Approves $18.8 Billion Sale to ONEOK, Creating Major U.S. Pipeline Player
- DT Midstream Successfully Completes Phase 1 LEAP Expansion Ahead of Schedule
- Equitrans to Begin Construction on Ohio Valley Connector Expansion Project
- Canada Looking to Sell Trans Mountain Pipeline Stake to Indigenous Groups
- Energy Transfer to Buy Crestwood in $7.1 Billion Pipeline Deal
- Criteria to Consider in Selecting Water Transfer Flow Meters
- US Energy Firm Payouts to Oil Investors Top Exploration Spending for First Time
- DT Midstream Successfully Completes Phase 1 LEAP Expansion Ahead of Schedule
Comments