March 16, 2022
Williams announced on March 14 that it had reached an agreement to acquire the Haynesville gathering and processing assets of Trace Midstream in a deal valued at $950 million. Trace is a portfolio company of Quantum Energy Partners.
Combining the Trace system with Williams’ existing footprint provides expanded scale in one of the largest growth pools in the United States, increasing the company’s collection capacity in the Haynesville basin by 1.8 billion cubic feet per day (Bcf/d) to more than 4 Bcf/d.
As part of the transaction, Trace’s customer and Quantum subsidiary, Rockcliff Energy, has agreed to a long-term capacity commitment to support Williams’ Louisiana Energy Gateway (LEG) project. The LEG Project is designed to collect responsibly sourced natural gas produced in Haynesville and connect it to Transco’s premium markets, as well as the growing export demand for industrial liquefied natural gas (LNG) along the Gulf Coast.
To further support the LEG project, Williams has signed a memorandum of understanding with Quantum to form a joint venture that will allow Quantum to become an equity investor and partner in the project. The partnership combines Williams’ expertise as a leading developer and operator of clean energy infrastructure with Quantum’s capabilities as the world’s leading provider of private capital for the responsible energy and energy transition sectors and decarbonization.
“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 a significant extension of our natural gas-focused strategy,” said Alan Armstrong, President and CEO of Williams. “We are delighted to have the opportunity to help Rockcliff continue its success and connect it to growing markets with Quantum as a new LEG partner. Importantly, this will be the flagship product of our low-carbon venture from wellhead to water, proving the important role natural gas can play in reducing emissions, lowering costs, and providing reliable, secure energy here and around the world. world.
Williams quickly expanded its Haynesville system to support existing and new customer growth, said Chad Zamarin, senior vice president of strategic business development at Williams.
“By leveraging our scale, value chain integration and unique capabilities, including our Sequent Energy platform and clean energy solutions from New Energy Ventures,” Zamarin said, “we facilitate the delivery of responsibly sourced gas to meet the climate goals and energy needs of our customers and our country.
Quantum chief executive Blake Webster expressed excitement about the partnership with Williams.
“We are grateful for our partnership with Trace’s leadership team who have developed a strategic infrastructure platform with high ESG standards,” said Webster. “Partnering with exceptional entrepreneurs like the Trace and Rockcliff teams and building great businesses have been hallmarks of Quantum’s success over the years. We are also excited to partner with Williams on the LEG project, which we see as a critical bridge to connect responsibly sourced Haynesville natural gas to Gulf Coast LNG markets.
Trace CEO Josh Weber said the company’s former Haynesville assets are in good hands with Williams.
“We’re proud of the team and the business we’ve built at Trace, and we’re grateful to see his continued success with Williams,” Weber said. “Over the past four years, we have positioned ourselves in one of the nation’s most prolific resource plays to transport responsibly sourced natural gas to premium markets along the Texas Gulf Coast and of Louisiana. Our safe, reliable and competitive midstream services are what our grower customers have come to expect, and we are confident that Williams will continue to be a good steward of these assets.
The transaction is expected to close in the second quarter subject to regulatory approvals.
Tags: Clean Energy, Haynesville, mergers and acquisitions, Trace Midstream, Williams