Williams Companies Nears $5.5 Billion Momentum Midstream Acquisition for Haynesville LNG Pipeline Access

Williams Companies (NYSE: WMB) is in advanced negotiations to buy Momentum Midstream from private equity firm EnCap Flatrock Midstream for approximately $5.5 billion, Bloomberg News reported June 28, 2026. A deal announcement could come within approximately one week. No final agreement has been signed, and EnCap could decide to retain the asset.

Momentum Midstream operates roughly 4,000 miles of natural gas pipelines with 6 billion cubic feet per day of system capacity. Its network serves 34 industrial end users, 26 power plants, 16 city gates, and 10 LNG facilities. The company's key asset is the NG3 pipeline, a 250-mile system connecting Haynesville Shale to LNG demand centers near Gillis, Louisiana, with 2.3 Bcf/d of throughput capacity.

Deal Implies $917 Million per Bcf/d of Pipeline Capacity

At $5.5 billion for 6 Bcf/d of system capacity, the transaction implies a purchase price of approximately $917 million per Bcf/d. Oil Authority calculates that the NG3 pipeline alone, representing 2.3 Bcf/d of that total, carries an embedded asset value of roughly $2.1 billion at the same rate. These implied metrics align with recent midstream infrastructure valuations during the US LNG export build-out cycle.

Williams Handles One-Third of US Daily Natural Gas Consumption

Tulsa-based Williams already moves roughly one-third of the natural gas consumed daily in the United States. Its transmission network spans the deepwater Gulf of Mexico, the Rockies, the Pacific Northwest, and the Eastern Seaboard. Adding Momentum's 6 Bcf/d of capacity would substantially expand Williams' existing network footprint.

Williams completed 1.1 Bcf/d of pipeline transmission projects in 2025 and has 7.1 Bcf/d of additional capacity under active construction. Record first-quarter 2026 earnings showed net income rising 25% year-over-year, driven by gas-focused expansion. The company carries a market capitalization of approximately $95 billion, with its stock at $77.92 on June 26.

EnCap Flatrock Built Momentum as a Haynesville-to-LNG Platform

EnCap Flatrock Midstream, a private equity firm established in 2008 and focused exclusively on natural gas midstream infrastructure, built Momentum as a pure-play Haynesville basin platform. Momentum commissioned the NG3 pipeline last year, creating a direct link from the expanding Haynesville production zone to Gulf Coast LNG export terminals. Selling into a period of strong LNG export demand allows EnCap to realize peak valuations on infrastructure it built specifically for this market cycle.

Haynesville Shale's Rising Role in US LNG Exports

The Haynesville Shale, spanning East Texas and northern Louisiana, has grown into a primary supply source for US LNG export terminals on the Gulf Coast. Proximity to those terminals gives Haynesville producers shorter transportation distances than Appalachian basin rivals, reducing per-unit delivery costs. Williams' acquisition of Momentum would secure long-term capacity on the basin's main LNG delivery corridor.

Alongside the Momentum pursuit, Williams is advancing its Northeast Supply Enhancement (NESE) project, set to add 400,000 dekatherms per day of Transco capacity across Pennsylvania, New Jersey, and New York, with an in-service target of fourth-quarter 2027. Williams CEO Chad Zamarin broke ground on the project April 14, 2026, with US Secretary of Energy Chris Wright in attendance. Together, these two expansions target premium demand centers at opposite ends of Williams' existing network.