WMB’s LNG Expansion

Williams Cos. (WMB) is moving toward a $5.5 billion acquisition of Momentum Midstream, the largest deal in its history. The purchase would add roughly 4,000 miles of pipeline that currently serves 10 LNG facilities and 26 power plants, extending WMB’s reach into the Haynesville shale region of East Texas and Northern Louisiana and connecting the company to export terminals on the U.S. Gulf Coast. Momentum’s infrastructure would also bring new access to LNG terminals scheduled to come online in Texas and Louisiana over the next several years, positioning WMB at the center of growing U.S. LNG export activity that is expected to double by the end of the decade. The deal is still in advanced talks with Momentum’s owner, EnCap Flatrock Midstream, and could be announced within a week, although no formal commitment has been made.