As countries in Europe and Asia look for clean and reliable energy solutions, global demand growth for liquified natural gas (LNG) is expected to double over the next 20 years, according to research firm Wood Mackenzie. Williams has access to the top supply basins in the United States and is executing a strategy to deliver low-carbon energy from the wellhead to the water.
LNG is natural gas that has been chilled to liquid form so it can be shipped internationally by ocean-going vessels. Many countries don’t have direct access to abundant natural gas supplies like the United States. LNG shipments enable the environmental benefits of natural gas to be shared internationally by replacing carbon-heavy fuels while supporting economic growth.
Williams recently announced it has entered an agreement with Sempra Infrastructure that establishes the elements of an integrated platform to further connect the prolific Haynesville basin to growing LNG export demand along the Gulf Coast and around the world.
“We see it as an opportunity to combine our capabilities along the natural gas value chain and increase the delivery of low-carbon, affordable and reliable natural gas from the wellhead to the growing international market,” said Alan Armstrong, president and CEO of Williams. “Facilitating the delivery of next generation natural gas to ease energy constraints at home and overseas, while also helping to meet domestic and global climate goals, is central to our natural gas focused strategy, and we look forward to being well aligned with Sempra Infrastructure’s unique capabilities and competitive advantages in the LNG infrastructure space.”
As part of the proposed transaction, Williams and Sempra Infrastructure plan to form a strategic joint venture to own, expand and operate the Cameron Interstate Pipeline that is expected to deliver natural gas to the proposed Cameron LNG Phase 2 in Hackberry, Louisiana. Additional pipelines are also expected to be owned by the joint venture to deliver natural gas to Sempra Infrastructure’s proposed Port Arthur, Texas LNG facility.
“We are excited to continue advancing our U.S. Gulf Coast LNG and associated pipeline projects as we work to help satisfy a growing global demand for cleaner, more reliable energy sources,” said Justin Bird, CEO of Sempra Infrastructure. “We look forward to advancing our relationship with Williams, a like-minded company that shares our commitment to building a future of energy abundance, affordability and security.”
Williams’ Louisiana Energy Gateway project, which is expected to go into service in late 2024, will gather 1.8 Bcf/d of natural gas produced in the Haynesville basin. Williams, through partnerships with Context Labs, Encino Environmental and Satlantis, is integrating technology solutions into the project to enable the measurement of end-to-end, verifiable and transparent emissions data to demonstrate the low carbon benefits of produced and delivered Haynesville natural gas. Williams is also exploring the enhancement of the LEG project with the addition of carbon capture and storage infrastructure that will further decarbonize the natural gas value chain.