Williams advances 13 pipelines and behind-the-meter power

Williams is developing 13 pipeline projects that will add about 12 billion cubic feet per day (Bcf/d) of capacity and is building a behind-the-meter power business. The Socrates power plant in Ohio is scheduled to start service later this year. The Southeast Supply Enhancement project (SESE), which would add roughly 1.5 Bcf/d, is targeting the second half of 2027.

The company’s pipeline work covers the Transco system and other parts of its network. Transco runs from Texas to New York City and historically has carried about 15% of U.S. natural gas. Williams now cites opportunities across 11 supply basins and has a project backlog amounting to about 14 Bcf/d of potential capacity tied to roughly $16 billion of potential capital investment. SESE is designed to move gas from EQT’s Mountain Valley Pipeline into the Southeast and is expected to be a near-term contributor to EBITDA.

Construction has started on the Northeast Supply Enhancement project (NESE), which is planned to bring more gas into New York City and Long Island and has an expected in-service date in the fourth quarter of 2027. Company executives have met with state officials and utilities about a proposed Constitution pipeline to increase supply into New York and New England. U.S. benchmark gas prices spiked close to $200 per MMBtu during winter storm Fern, while prices in the Marcellus and Utica regions traded below $5 per MMBtu, illustrating large regional price differences.

Williams is also pursuing behind-the-meter power aimed at data centers and other large energy users. The Socrates project, announced earlier this year, is planned to come online in Ohio before year-end. The company estimates its construction experience, turbine operations and gas-marketing and logistics capabilities let it bring self-sited power facilities online faster than waiting for grid interconnection, which can take five to eight years in some areas. Williams can operate the plant, build connecting pipeline infrastructure and manage fuel supply and storage.

On capital allocation, Williams plans higher growth spending while maintaining an investment-grade balance sheet. The company targets a net-debt-to-EBITDA ratio of 3.5–4.0x and expects to be toward the higher end of that range this year. Dividend increases will track growth in available funds from operations per share; the dividend was raised by 5% earlier in the year. Management retains a share buyback authorization but faces competing uses for capital given the size of the organic opportunity set and potential merger-and-acquisition priorities.

Williams cites growing global demand for U.S. natural gas, including increased interest in liquefied natural gas exports following geopolitical tensions such as the Iran conflict. The company lists gathering, processing and long-haul pipeline assets as positioned to serve utility and export customers.