Williams to Buy Gas Assets for $1.95 Billion in LNG Bet

(Bloomberg) -- Pipeline operator Williams Cos. agreed to buy natural gas storage assets from an affiliate of Hartree Partners LP for $1.95 billion in a bet on demand growth for the fuel in the US and in overseas markets.

The deal includes six underground storage facilities in Louisiana and Mississippi, Williams said Wednesday in a statement. The company will also get 230 miles (370 kilometers) of pipeline plus 30 interconnects.

As well as giving Williams storage connected to Transco, the biggest US gas transmission conduit, the transaction positions Williams to gain from further expansion of the nation’s liquefied natural gas export industry. The US has grown in recent years to vie with Qatar and Australia as the world’s largest shipper of LNG. More capacity is planned for the US Gulf Coast, with three new LNG export terminals reaching a final investment decision this year.

Shares of Williams fell 0.3% at 9:31 a.m. in New York.

The purchase adds to Williams’ investments in the Gulf Coast to service LNG exports, which includes the Louisiana Energy Gateway pipeline expansion. Williams also inked a non-binding agreement with LNG export developer Sempra in 2022, though it hasn’t yet finalized the deal.

BofA Securities is the financial adviser to Williams on the deal and Davis Polk & Wardwell LLP is its legal adviser. For Hartree, Evercore is lead financial adviser and Wells Fargo Securities LLC is financial adviser. Milbank LLP is Hartree’s legal adviser.

(Adds shares in fourth paragraph.)

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