TULSA: U.S. energy company Williams (WMB.N) on Thursday announced a pair of transactions to advance its natural gas strategy, including the sale of a Louisiana upstream asset to Japan’s JERA and a $1.9 billion partnership with Woodside Energy (WDS.AX) to invest in an LNG export project.
The moves are designed to strengthen Williams’ integrated “wellhead-to-water” strategy, connecting domestic natural gas production to the growing global liquefied natural gas (LNG) market.
In the first transaction, Williams signed a definitive agreement to sell its minority stake in the South Mansfield upstream gas asset in Louisiana to JERA for $398 million in cash. The deal includes additional deferred payments through 2029 tied to a pre-defined development plan.
GEP Haynesville II, LLC, the majority owner, is also selling its stake to JERA but will remain the operator of the asset. Williams will retain a critical role by gathering the gas produced at South Mansfield and transporting it through its Louisiana Energy Gateway (LEG) pipeline system to LNG export facilities.
The sale, expected to close by the end of 2025, is subject to customary conditions, including U.S. foreign investment committee approval.
In a separate, strategic partnership, Williams will invest approximately $1.9 billion to acquire stakes in Woodside’s Louisiana LNG project and a related pipeline. Williams will purchase an 80% interest in and become the operator of the Driftwood Pipeline, which will connect the LNG facility to major pipelines, including Williams’ own Transco and LEG systems.
Additionally, Williams will acquire a 10% interest in the Louisiana LNG LLC export facility itself and has entered into a long-term agreement to offtake 1.5 million tonnes per annum of LNG. Woodside, which announced a positive final investment decision for the project in April, will remain the majority owner and operator of the LNG facility.
“The transactions mark an important step forward in Williams’ wellhead-to-water strategy,” Williams Chief Executive Chad Zamarin said in a statement. “We are thrilled to partner with Woodside and create a strategic relationship with JERA.”
The companies plan to use Williams’ Sequent Energy Management platform to supply natural gas to the Louisiana LNG facility, further integrating Williams’ midstream and marketing operations.