Williams plans $1.9B investment in Woodside's Louisiana LNG project

Williams Companies (NYSE:WMB) announced transactions Wednesday it said will strengthen its "wellhead to water" strategy, unveiling a strategic partnership with Woodside Energy (NYSE:WDS) to advance Louisiana pipeline and liquefied natural gas projects, and agreeing to sell its South Mansfield upstream assets to JERA.

Williams (NYSE:WMB) said it entered a strategic partnership with Woodside Energy (NYSE:WDS) to invest in the Louisiana LNG project, in which it will acquire 80% ownership in and become operator of Driftwood Pipeline LLC, which includes the construction of Line 200, a fully permitted greenfield pipeline connecting Woodside's Louisiana LNG facility to multiple pipelines, including Transco and Louisiana Energy Gateway.

As part of the partnership, Williams (NYSE:WMB) will acquire a 10% interest in Louisiana LNG LLC and has entered into a 1.5 million tons/year LNG offtake obligation; Woodside (NYSE:WDS) will retain majority ownership in Louisiana LNG and 20% of Driftwood Pipeline LLC, ensuring strong alignment and operational continuity.

In total, Williams (WMB) expects its investment will total ~$1.9 billion in capital for development of the pipeline and LNG facilities.

Also, Williams (WMB) said it will sell its minority interest in South Mansfield upstream to JERA for $398 million plus deferred monthly payments through 2029; GEP Haynesville II LLC also will sell its majority interest in South Mansfield upstream while continuing to operate and develop the asset.

Under JERA's ownership, Williams (WMB) will continue to gather natural gas volumes from South Mansfield and deliver the volumes through its Louisiana Energy Gateway system for deliveries into downstream LNG markets.