Williams in $5.5B Talks for Haynesville Pipeline Firm Momentum Midstream
The potential acquisition would expand a major gas pipeline giant's reach into key LNG export corridors, a market Bakken gas producers also seek to access.
U.S. natural gas pipeline giant Williams is in late-stage talks to acquire pipeline operator Momentum Midstream in a deal estimated to be worth about $5.5 billion, according to a report from Bloomberg cited by OilPrice.com. A deal could be announced within weeks, though no final decision has been made.
The acquisition target, Momentum Midstream, is owned by private equity firm EnCap Flatrock Midstream. It owns and operates the only pure pipeline header system spanning the entire Haynesville Shale, directly connecting gas supply to multiple LNG facilities on the U.S. Gulf Coast.
For Bakken operators and royalty owners, the potential deal highlights the intense industry focus and capital flowing toward infrastructure linking prolific shale basins to liquefied natural gas (LNG) export terminals. While the reported transaction centers on the Haynesville play in Louisiana and Texas, it underscores the critical importance of takeaway capacity to high-value LNG markets—a long-term strategic goal for North Dakota's gas producers seeking to move beyond local markets and capture global prices.
Momentum Midstream’s key asset is its NG3 pipeline, a 250-mile line with a capacity of 2.3 billion cubic feet per day (Bcf/d) that directly links the Haynesville to the LNG demand center in Gillis, Louisiana. In total, the company operates about 4,000 miles of pipelines with 6 Bcf/d of system capacity, servicing 10 LNG facilities, among other industrial end users.
If completed, the deal would significantly expand Williams's exposure to takeaway capacity from the Haynesville shale to LNG export terminals. Williams already handles about one-third of the natural gas consumed daily in the United States, with operations spanning multiple regions including the Rockies. The company reported record first-quarter earnings, with net income up 25% year-over-year, driven by its gas-focused strategy and expansion projects.
The reported move by a major midstream player to consolidate and expand its foothold in a key LNG-supplying basin signals continued confidence in long-term domestic gas production and export demand. For the Bakken, which produces significant associated gas alongside its crude oil, developments in Gulf Coast infrastructure and market access set a competitive benchmark and influence broader midstream investment strategies.
Source
OilPrice.com, citing Bloomberg.
