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Williams enters heads of agreement with Sempra Infrastructure

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World Pipelines,


Williams has announced that it has entered into a non-binding heads of agreement (HOA) with Sempra Infrastructure, a subsidiary of Sempra, that establishes the elements of an integrated platform to further connect the prolific Haynesville basin to growing LNG export demand along the Gulf Coast and around the world. The HOA contemplates long-term gas sales of approximately 0.5 billion ft3/d delivered near Gillis, Louisiana, and two LNG offtake agreements for approximately 3 million tpy in the aggregate from Sempra Infrastructure’s proposed Cameron LNG Phase 2 and Port Arthur LNG projects. These proposed transactions complement Williams’ recently sanctioned low-carbon Louisiana Energy Gateway (LEG) gathering project and are expected to include connections to pipelines serving Sempra Infrastructure’s LNG export facilities.

As part of the proposed transaction, Williams and Sempra Infrastructure plan to form a strategic Joint Venture (JV) to own, expand and operate the Cameron Interstate Pipeline that is expected to deliver natural gas to the proposed Cameron LNG Phase 2 in Hackberry, Louisiana. Additional pipelines are also expected to be owned by the JV, including the Louisiana Connector Pipeline expected to deliver natural gas to Sempra Infrastructure’s proposed Port Arthur LNG facility, located in Port Arthur, Texas.

“Williams is pleased to pursue this strategic transaction with Sempra Infrastructure. We see it as an opportunity to combine our capabilities along the natural gas value chain and increase the delivery of low-carbon, affordable and reliable natural gas from the wellhead to the growing international market,” said Alan Armstrong, President and CEO of Williams. “Facilitating the delivery of next generation natural gas to ease energy constraints at home and overseas, while also helping to meet domestic and global climate goals, is central to our natural gas focused strategy, and we look forward to being well aligned with Sempra Infrastructure’s unique capabilities and competitive advantages in the LNG infrastructure space. Coupling our strengths in the midstream infrastructure space will allow us to provide unrivalled access to international markets for our producing customers.”

“We are excited to continue advancing our US Gulf Coast LNG and associated pipeline projects as we work to help satisfy a growing global demand for cleaner, more reliable energy sources,” said Justin Bird, CEO of Sempra Infrastructure. “We look forward to advancing our relationship with Williams, a like-minded company that shares our commitment to building a future of energy abundance, affordability and security.”

Williams’ LEG project, which is expected to go into service in late 2024, will gather 1.8 billion ft3/d of natural gas produced in the Haynesville basin. Williams, through partnerships with Context Labs, Encino Environmental and Satlantis, is integrating technology solutions into the project to enable the measurement of end-to-end, verifiable, and transparent emissions data to demonstrate the low carbon benefits of produced and delivered Haynesville natural gas. Williams is also exploring the enhancement of the LEG project with the addition of carbon capture and storage (CCS) infrastructure that will further decarbonise the natural gas value chain.

Read the article online at: https://www.worldpipelines.com/contracts-and-tenders/22112022/williams-enters-heads-of-agreement-with-sempra-infrastructure/

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