Published: September 13, 2022 |

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Williams has revealed the acquisition of NorTex Midstream, a natural gas storage and pipeline operator in north Texas, for $423 million from an affiliate of Tailwater Capital.

The deal gives Williams natural gas storage capacity of 36 billion cubic feet (Bcf) of in the Dallas-Fort Worth market in addition to more than 128km of natural gas transmission pipelines.

NorTex Midstream’ assets include Tolar Hub, Hill-Lake Gas Storage, and Worsham-Steed Gas Storage, which are said to be interconnected to various major pipeline systems that serve the Dallas/Fort Worth greater metropolitan region.

The company was acquired by Tailwater Capital in February 2021 for an undisclosed price.

“We are pleased to have partnered with NorTex and to have played a role in enhancing the company’s ongoing efforts to provide the highest quality energy storage needs for customers across North Texas. The partnership exemplifies Tailwater’s approach to working alongside best-in-class management teams and leveraging our operational expertise to accelerate growth, unlock value and support the transition to a low-carbon economy,” said Tailwater Capital Co-founder and Managing Partner Edward Herring.

Through the acquisition, Williams will be able to supply storage services for Permian gas which is intended to meet the rising liquefied natural gas (LNG) demand on the Gulf Coast.

The assets of NorTex Midstream offer critical service to nearly 4GW of gas-fired power generation that enables Texan energy providers to meet peak demands.

The midstream operator is said to supplied over 5Bcf of natural gas to its customers, which is enough volume to heat and power nearly 380,000 homes.

“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,” said Williams President and CEO Alan Armstrong.

“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,” added Armstrong.

Source: NS Energy

About Williams
As the world demands reliable, low-cost, low-carbon energy, Williams will be there with the best transport, storage and delivery solutions to reliably fuel the clean energy economy. Headquartered in Tulsa, Oklahoma, Williams is an industry-leading, investment grade C-Corp with operations across the natural gas value chain including gathering, processing, interstate transportation, storage, wholesale marketing, and trading of natural gas and natural gas liquids. With major positions in top U.S. supply basins, Williams connects the best supplies with the growing demand for clean energy. Williams owns and operates more than 30,000 miles of pipelines system wide — including Transco, the nation’s largest volume and fastest growing pipeline — and handles approximately 30 percent of the natural gas in the United States that is used every day for clean-power generation, heating and industrial use.

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