Williams Reaches FID on Clean Energy Project | ETF Trends

Williams (WMB) has reached a final investment decision on its clean energy project, the Louisiana Energy Gateway (LEG), to serve industrial and LNG export markets along the Gulf Coast.

Williams intends to create opportunities to pursue additional market access projects as well as develop carbon capture and storage infrastructure that will further decarbonize the natural gas value chain, the firm said in a statement on June 29. 

LEG will gather 1.8 Bcf/d of natural gas produced in the Haynesville basin for delivery to premium markets, including Transco, industrial markets, and growing LNG export demand along the Gulf Coast, the firm said. The project is expected to go into service in late 2024.

The strength in LNG markets has spurred a resurgence in long-term off-take agreements, which are key to advancing LNG export projects towards a Final Investment Decision (FID), which is the point at which companies formally commit to moving forward with projects and construction begins, Mauricio Samaniego, senior research analyst at VettaFi, wrote in a recent insight.

“The Louisiana Energy Gateway is a key component of our low carbon, wellhead to water strategy, proving up what an important role natural gas can play in reducing emissions, lowering costs and providing secure and reliable energy at home and around the world,” Alan Armstrong, president and CEO of Williams, said in a statement. “By leveraging our scale, value chain integration, and unique capabilities, we are unlocking capacity for Haynesville production growth and facilitating the delivery of next-gen gas to meet the climate goals and the energy needs of our customers and our country.”

Williams has recently announced partnerships with Context Labs, Encino Environmental, and Satlantis, whose technology solutions will be integrated into the project and will enable the measurement of end-to-end, verifiable, and transparent emissions data to demonstrate the low carbon benefits of produced and delivered Haynesville natural gas, according to a statement from the firm. 

Williams is a top 10 holding in the Alerian Energy Infrastructure ETF (ENFR), which weights the security at 5.39% as of June 30. The largest holdings in ENFR as of June 30 include Enbridge (ENB, 10.55%), Enterprise Products Partners LP (EPD, 8.46%), TC Energy Corporation (TRP, 7.21%), Energy Transfer LP (ET, 6.38%), and Cheniere Energy Inc (LNG, 5.62%), according to VettaFi. 

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