Williams Cos Inc On Track to Complete Two Natural Gas Pipeline Projects on Schedule
During the Reuters Global Energy Transition conference, Williams Cos Inc CEO Alan Armstrong confirmed that the U.S. energy company is making steady progress in completing two major natural gas pipeline projects in New Jersey and Louisiana. The projects are expected to be finalized by the end of 2024.
Armstrong provided details on the progress of each project. The Regional Energy Access expansion, which spans New Jersey, Pennsylvania, and Maryland, is divided into two phases. The first phase, set to be operational in the fourth quarter of 2023, will deliver approximately half of the project's total gas capacity of 0.83 billion cubic feet per day (bcfd) to customers. The second phase remains on track for completion in late 2024, with the overall cost estimated at nearly $1 billion.
Additionally, Armstrong mentioned the Louisiana Energy Gateway project, scheduled to be finalized in the fourth quarter of 2024. This initiative aims to enhance access to liquefied natural gas (LNG) export plants on the U.S. Gulf Coast for producers in the Haynesville shale region of Arkansas, Louisiana, and Texas.
Highlighting Williams' strategic plans, Armstrong revealed their intention to secure LNG capacity and distribute it to their producing customers. Many of these customers are eager to enter global markets in Europe and Asia, where gas prices are around $8 per million British thermal units (mmBtu), significantly higher than the U.S. Henry Hub benchmark price of approximately $2 per mmBtu in Louisiana.
Armstrong further mentioned a non-binding agreement made in 2022 between Williams and Sempra Energy's Port Arthur LNG export plant in Texas, securing around 3 million tonnes per annum of capacity. He hinted at upcoming announcements regarding other opportunities that Williams has identified, while noting that discussions with Sempra Energy are still ongoing. Specific details about these opportunities were not disclosed.
