Williams, Sempra to launch Haynesville gas pipeline development plan

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Williams (NYSE:WMB) said late Tuesday it entered into a non-binding heads of agreement with Sempra (NYSE:SRE) to establish "the elements of an integrated platform" to connect production from the Haynesville shale to U.S. Gulf Coast and global natural gas markets.

Williams (WMB) said the HOA contemplates long-term sales of 500M cf/day of gas delivered near Gillis, La., and two LNG offtake agreements totaling 3M metric tons/year from Sempra's (SRE) proposed 6.75M tons/year Cameron LNG Phase 2 and 13M tons/year Port Arthur LNG liquefaction projects.

As part of the proposed deal, Williams (WMB) and Sempra (SRE) would plan to form a joint venture to own, expand and operate the 2.35B cf/day Cameron Interstate pipeline that is expected to deliver natural gas to the proposed Cameron LNG Phase 2 in Louisiana, as well as the 2B cf/day Louisiana Connector pipeline to supply Port Arthur LNG in Texas.

Williams (WMB) said the proposed pipelines are intended to complement its recently sanctioned Louisiana Energy Gateway 1.8B cf/day Haynesville gathering project, which is expected to enter service in late 2024.

Williams (WMB) has several upcoming growth projects that are expected to drive earnings growth in the coming years, RCK Analytics writes in an analysis published recently on Seeking Alpha.