Tulsa-based Williams may be on the verge of its largest-ever acquisition, entering advanced negotiations to buy gas pipeline operator Momentum Midstream. The deal, estimated at roughly $5.5 billion, would significantly strengthen its position in the growing LNG export market, according to sources familiar with the matter.
Momentum Midstream, currently owned by private equity firm EnCap Flatrock Midstream, operates natural gas pipelines connecting key supply basins to LNG export terminals. The acquisition would give Williams control over critical infrastructure along the Gulf Coast, where LNG export demand is surging as global buyers seek alternatives to Russian gas.
The planned purchase underscores a broader push by midstream companies to consolidate pipeline networks serving LNG facilities. For Williams, the deal represents a strategic bet on sustained growth in U.S. natural gas exports, which have risen sharply since 2022. Yet the transaction has not been finalized, with a final decision expected within weeks, per Bloomberg's anonymous sources.
Geopolitically, this move aligns with Washington's push to boost LNG exports as a tool for energy security, particularly for European allies. However, the agreement faces potential regulatory hurdles, including scrutiny over pipeline monopolization and environmental concerns about new gas infrastructure along the Gulf Coast.
Critics argue that doubling down on gas infrastructure locks in fossil fuel dependency at a time when global climate goals call for a rapid shift to renewables. Environmental groups have already targeted recent pipeline expansions, warning that emissions from such projects could undermine U.S. climate commitments.