Williams to pay $2 billion to buy natural gas storage assets from Hartree Partners

Williams Companies (WMB) announced Wednesday an agreement to buy a portfolio of natural gas storage assets for $1.95 billion from an affiliate of Hartree Partners L.P. The deal includes six underground storage facilities in Louisiana and Mississippi and 230 miles of gas transmission pipeline. The deal is expected to close in January 2024. "These assets better position Williams' natural gas storage operations to serve Gulf Coast LNG demand and growing electrification loads from data centers along the Transco corridor," said Williams Chief Executive Alan Armstrong. "Importantly, this storage will also allow us to provide value to customers in markets with growing renewables adoption as daily peaks for natural gas increases the need for storage." Williams stock, which was indicated up fractionally, has gained 6.8% year to date, while the Energy Select Sector SPDR ETF (XLE) has lost 2% and the S&P 500 has rallied 24.4%.

-Tomi Kilgore

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12-27-23 0822ET

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