Published: March 16, 2022 |

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U.S.-based midstream company Williams has agreed to acquire the gathering and processing assets of Trace Midstream in the Haynesville shale region in the U.S. for $950 million.

Trace Midstream’s Haynesville assets include the Gemini Carthage pipeline (GCP) system, Endeavor gathering system, and Star gathering system.

The gathering and transmission pipeline systems traverse the Panola and Harrison counties in East Texas and certain parishes in Louisiana. These include over 386km of high and low-pressure pipelines along with various treating and dehydration facilities.

Trace Midstream is a portfolio company of Quantum Energy Partners.

“Over the past four years, we have positioned ourselves in one of the most prolific resource plays in the country to transport responsibly sourced natural gas to premium markets along the Texas and Louisiana Gulf Coast,” said Trace Midstream CEO Josh Weber.

“Our safe, reliable, and competitive midstream services are what our producer customers have come to expect, and we are confident that Williams will continue to be a good steward of these assets,” added Weber.

Through the deal, Williams will boost its gathering capacity in the Haynesville basin from 1.8 billion cubic feet (Bcf/d) to more than 4Bcf/d.

As part of the deal, Rockcliff Energy, which is a customer of Trace Midstream and an affiliate of Quantum Energy Partners, has agreed to a long-term capacity commitment to underpin Williams’ Louisiana Energy Gateway (LEG) project.

According to Williams, the LEG project can gather natural gas produced in the Haynesville and transport it to premium Transco markets as well as meet rising industrial and liquefied natural gas (LNG) export demand along the Gulf Coast.

For additional support of the LEG project, Williams and Quantum Energy Partners have signed a memorandum of understanding to create a joint venture to enable the latter to become an equity investor and partner in the midstream project.

“Williams continues to increase scale and connectivity in the best and most efficient natural gas basins, and these transactions with Trace, Rockcliff, and Quantum represent an important extension of our natural gas-focused strategy. We are excited for the opportunity to help Rockcliff continue their success and connect them to growing markets with Quantum as our new partner in LEG,” said Williams President and CEO Alan Armstrong.

“Importantly, this is going to be the flagship of our low carbon wellhead to water venture, proving up what an important role natural gas can play in reducing emissions, lowering costs and providing secure reliable energy here and around the world,” added Armstrong.

“We have been rapidly expanding our Haynesville system to support growth from existing and new customers,” said Chad Zamarin, Williams senior vice president of Corporate Strategic Development.

“By leveraging our scale, value chain integration and unique capabilities, including our Sequent Energy platform and New Energy Ventures clean energy solutions, we are facilitating the delivery of responsibly sourced gas to meet the climate goals and the energy needs of our customers and our country,” added Zamarin.

“We are grateful for our partnership with the Trace management team who developed a strategic infrastructure platform with high ESG standards,” said Blake Webster, managing director with Quantum.

“Partnering with exceptional entrepreneurs like the Trace and Rockcliff teams and building businesses of scale have been hallmarks of Quantum’s success over the years. We are also excited to establish a partnership with Williams on the LEG project, which we view as a critical bridge to connect responsibly sourced Haynesville natural gas with Gulf Coast LNG markets,” added Webster.

The deal, which is subject to regulatory approvals, is expected to be completed in Q2 2022.

Source: NS Energy

About Williams
Williams is committed to being the leader in providing infrastructure that safely delivers natural gas products 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 and storage 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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