Williams divests upstream asset, partners with Woodside Energy

Williams (WMB) announced a series of transactions that strengthens the company’s wellhead to water strategy. First, Williams has signed definitive agreements to sell its minority interest in South Mansfield upstream to JERA for $398M plus deferred monthly payments through 2029 based on a predefined development plan. Under JERA’s ownership, Williams will continue to gather natural gas volumes from South Mansfield and will deliver those volumes through Williams’ Louisiana Energy Gateway system for deliveries into downstream LNG markets. Closing is expected to occur by the end of 2025. Second, Williams has entered a strategic partnership with Woodside Energy to invest in the Louisiana LNG project, a fully permitted LNG export facility located along the Calcasieu Ship Channel. Williams will acquire 80% ownership in and become operator of Driftwood Pipeline, which includes the construction of Line 200, a fully permitted greenfield pipeline connecting Woodside’s Louisiana LNG facility to multiple pipelines. Williams will acquire a 10% interest in Louisiana LNG and has entered into a 1.5 mtpa LNG offtake obligation. In total, Williams’ investment is expected to be approximately $1.9B in capital for development of the pipeline and LNG facilities.