US midstream company Williams has entered into a non-binding heads of agreement with Sempra Infrastructure on a plan to carry gas from the Haynesville shale to Sempra’s planned liquefied natural gas export facilities in exchange for 3 million tonnes per annum of LNG.
The HoA contemplates the sale of approximately 500 million cubic feet per day of gas delivered by Williams near Gillis, Louisiana. The gas would then be transported to Sempra’s proposed Cameron LNG Phase 2, also in Louisiana, and Port Arthur LNG in Texas.
Williams and Sempra said the agreement “establishes the elements of an integrated platform to further connect the prolific Haynesville basin to growing LNG export demand along the US Gulf Coast and around the world”.
“These proposed transactions complement Williams’ recently sanctioned low-carbon Louisiana Energy Gateway gathering project and are expected to include connections to pipelines serving Sempra’s LNG export facilities,” the companies said.
As part of the proposed transaction, the duo plans to form a joint venture to own, expand and operate the Cameron Interstate Pipeline, which will deliver natural gas to Cameron LNG Phase 2. Additional pipelines are also expected to be part of the joint venture, including the Louisiana Connector Pipeline that will transport gas to Port Arthur LNG.
Williams’ Louisiana Energy Gateway, which will gather approximately 1.8 billion cubic feet per day of gas from the Haynesville, is scheduled to enter service in late 2024.
“We are excited to continue advancing our US Gulf Coast LNG and associated pipeline projects as we work to help satisfy a growing global demand for cleaner, more reliable energy sources,” said Sempra Infrastructure chief executive Justin Bird.
“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.”