Oklahoma-based Williams Companies is reported to be in serious negotiations to acquire natural-gas gathering company, Momentum Midstream, a deal that would expand the company’s LNG pipeline reach and also result in one of the largest such transactions for Williams.
The talks are supposedly in “advanced negotiations” and would approach a deal valued at about $5.5 billion, reported Crypto Briefing. It would greatly expand the Williams company’s existing large infrastructure network that stretches for nearly 30,000 miles across the U.S. Observers describe it as a deal that would greatly increase the Tulsa company’s footprint at a time when there is a growing demand for natural gas.
Bloomberg first reported the talks in a June 28 report and it was followed by Reuters. Reports indicated the deal could be formalized in a week. However, the talks still could collapse and no deal would develop.
Momentum Midstream is headquartered in Houston, Texas and its company website said it was founded to meet a challenge and seize an opportunity — by building critical midstream infrastructure to safely, responsibly, and efficiently transport oil and natural gas.
“Since then, we’ve connected America’s most active supply basins, including the Barnett, Marcellus, Utica, Cotton Valley, Haynesville, and Gulf Coast, to the markets and demand centers that rely on them.”
Momentum is also backed by private equity firm
EnCap Flatrock Midstream, which retains the option to keep the asset if negotiations don’t produce acceptable terms.
In 2019, Williams paid $733 million for a 31% operated interest in Momentum’s M4 Utica system. So if this deal is finalized it would expand the company’s operations in the Appalacian region and also rank among the largest transactions in the corporate history of Williams. The M4 system is a prominent natural gas gathering and NGL processing infrastructure network in eastern Ohio. It features an extensive footprint of gathering pipelines and large-scale cryogenic processing plants.
As reported by
Yahoo Finance, Momentum Midstream operates approximately 4,000 miles of pipelines serving ten liquefied natural gas (LNG) facilities and 26 power plants. The company has focused its growth strategy on acquiring assets in East Texas and Louisiana. Last year, Momentum Midstream commissioned the 250-mile NG3 pipeline system with a total capacity of 2.3 billion cubic feet per day. NG3 carries gas from the expanding Haynesville basin to LNG facilities centered around Gillis, Louisiana.
