Marketing assets

Williams (WMB) acquisition of assets of Trace Midstream for $950M

Tulsa, OK-based pipeline operator, The Williams Companies, Inc. WMB said it has signed an agreement to buy Trace Midstream Haynesville’s gathering and processing assets in a deal valued at $950 million. This transaction with Trace, which is a portfolio company of Quantum Energy Partners, is done to expand Williams’ footprint in Louisiana’s Haynesville Shale.

The company said this development increases its gathering capacity in Haynesville to more than 4 billion cubic feet per day (billion cubic feet/d) from 1.8 billion cubic feet/d. WMB expects the purchase to result in an investment value of approximately six times 2023 EBITDA.

Through the agreement, Rockcliff Energy, Trace’s customer and Quantum partner, has accepted long-term capacity assurance in support of the Williams Energy Gateway Louisiana (LEG) project. The project is designed to collect approximately 2 billion cubic feet/d of natural gas produced in Haynesville and link it to premium Transco markets, as well as liquefied natural gas export terminals, and industrial consumers located on the coast of Gulf.

Williams also said he has signed a memorandum of understanding with Quantum to create a joint venture that will allow Quantum to become an investor and partner in the LEG project. This partnership will combine Williams’ expertise as a top developer and operator of a clean energy facility with Quantum’s expertise as a leading global provider of private capital to the energy transition and energy from responsible sources and decarbonization sectors.

Founded in 1908, The Williams Companies, Inc. is one of North America’s leading energy infrastructure providers. WMB’s core operations include the exploration, production, gathering, processing and transportation of natural gas and natural gas liquids. Boasting a widespread pipeline system of over 33,000 miles of pipeline, Williams is one of the nation’s largest carriers of natural gas by volume. The company, whose peers include Pembina pipeline APB, Expro Holdings Group XPRO and Plains Group PAGP, has its facilities – gas wells, pipelines and midstream services – concentrated in the Northwest, Rocky Mountains, Gulf Coast and Eastern Seaboard.

Founded in 1954, Pembina Pipeline Corporation is Canada’s vertically integrated operator of energy infrastructure assets. Headquartered in Calgary, Alberta, the company is active across the entire hydrocarbon value chain, providing a full range of midstream and marketing solutions.

Expro International Group Holdings Ltd. is an oil and gas services company. Expro International Group Holdings, formerly known as Frank’s International NV, is based in Reading, UK. XPRO employs over 6,600 people in over 64 countries.

Plains GP Holdings, LP, based in Houston, Texas, operates as a holding company. Plains Group, through its subsidiaries, is involved in the transportation, storage, terminalling and marketing of crude oil and refined products. PAGP also focuses on the processing, transportation, fractionation, storage and marketing of natural gas liquids, including ethane and natural gasoline products, as well as butane and propane products.

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