Williams Acquires Texas Natural Gas Pipeline for $423 Million

(P&GJ) — Williams has acquired NorTex Midstream, a fully contracted natural gas pipeline and storage asset located in north Texas, from an affiliate of Tailwater Capital.

The $423 million transaction, which closed on August 31, 2022, includes approximately 80 miles of natural gas transmission pipelines and 36 Bcf of natural gas storage in the Dallas-Fort Worth market. The NorTex assets provide critical service to approximately 4 GW of gas fired power generation, enabling Texas energy providers to successfully meet peak demands.

In addition to providing critical gas supply to power generation in north Texas, these assets also position Williams to provide storage services for Permian gas directed toward growing Gulf Coast LNG demand.

“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,” Alan Armstrong, Williams President and CEO, said. “During the extreme cold of Winter Storm Uri, the NorTex pipeline and storage facilities reliably provided gas to residential customers and electric power plants throughout the entire storm. We see significant upside to integrating these assets, especially when combined with our existing transmission and storage capabilities.”

 

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