Williams Buys Driftwood Pipe, 10% Stake in Woodside Louisiana LNG

Williams engaged in some LNG jiu-jitsu yesterday, announcing several transactions related to LNG exports. It's somewhat complicated, but we'll break it down. First, Williams sold its interest in the Haynesville's South Mansfield upstream (drilling) venture to JERA, Japan's top power generator, for $398 million. Williams will continue to operate the gathering system for the South Mansfield wells. Second, Williams is buying 80% (becoming the operator) of the 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 (LEG). Third, Williams is buying a 10% stake in the Louisiana LNG export facility. Williams will pay $378 million for the Driftwood Pipeline and the 10% stake in Louisiana LNG. However, Williams will contribute another $1.9 billion for its share of capital expenditures for the LNG facility and pipeline. Williams' total investment will be roughly $2.3 billion. And yes, there is a connection to the Marcellus/Utica.

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