Williams acquires north Texas natural gas pipeline, storage assets

Williams Field Services Group LLC, a subsidiary of Williams, closed a deal Aug. 31 to acquire NorTex Midstream LLC, a fully contracted natural gas pipeline and storage asset in north Texas, from an affiliate of Tailwater Capital LLC for $423 million.

The assets include 83 miles of natural gas transmission pipelines, 36 bcf of depleted reservoir working natural gas storage (26.0 bcf Worsham-Steed in Jack County, 10.0 bcf Hill-Lake in Eastland County), and the Tolar natural gas hub, which connects the Worsham-Steed gas storage infrastructure to major pipelines serving the greater Dallas-Fort Worth market.

The assets are well positioned to store Permian basin gas supply directed towards US Gulf Coast demand, Williams said in a release Sept. 8. The assets also serve as critical infrastructure for Texas power grid reliability with gas storage and supply for 4 gigawatts of power generation, Williams continued.

Tailwater acquired NorTex in February 2021. Since then, NorTex has executed agreements to directly connect and supply natural gas to some of the Dallas-Fort Worth market's largest power plants.