Williams has revealed the acquisition of NorTex Midstream, a natural gas storage and pipeline operator in north Texas, for $423m from an affiliate of Tailwater Capital.
The deal gives Williams natural gas storage capacity of 36 billion cubic feet (Bcf) of in the Dallas-Fort Worth market in addition to more than 128km of natural gas transmission pipelines.
NorTex Midstream’ assets include Tolar Hub, Hill-Lake Gas Storage, and Worsham-Steed Gas Storage, which are said to be interconnected to various major pipeline systems that serve the Dallas/Fort Worth greater metropolitan region.
The company was acquired by Tailwater Capital in February 2021 for an undisclosed price.
Tailwater Capital co-founder and managing partner Edward Herring said: “We are pleased to have partnered with NorTex and to have played a role in enhancing the Company’s ongoing efforts to provide the highest quality energy storage needs for customers across North Texas.
“The partnership exemplifies Tailwater’s approach to working alongside best-in-class management teams and leveraging our operational expertise to accelerate growth, unlock value and support the transition to a low-carbon economy.”
Through the acquisition, Williams will be able to supply storage services for Permian gas which is intended to meet the rising liquefied natural gas (LNG) demand on the Gulf Coast.
The assets of NorTex Midstream offer critical service to nearly 4GW of gas-fired power generation that enables Texan energy providers to meet peak demands.
The midstream operator is said to supplied over 5Bcf of natural gas to its customers, which is enough volume to heat and power nearly 380,000 homes.
Williams president and CEO Alan Armstrong said: “Serving one the fastest growing population centres in the United States, this irreplaceable natural gas infrastructure is critical to bridging the gap between limited supplies and periods of peak demand, while supporting the viability of intermittent renewables like solar and wind.
“During the extreme cold of Winter Storm Uri, the NorTex pipeline and storage facilities reliably provided gas to residential customers and electric power plants throughout the entire storm.
“We see significant upside to integrating these assets, especially when combined with our existing transmission and storage capabilities.”
