Williams Secures $5.34 Billion for Gas-Fired Power Projects
Williams secured a $5.34 billion investment led by Blackstone to advance more than 2.6 GW of behind-the-meter natural gas power projects while expanding its 6-GW development pipeline.
(P&GJ) — Williams has secured a $5.34 billion investment led by Blackstone, with participation from Apollo and KKR-managed investment vehicles, to accelerate development of five behind-the-meter natural gas power projects serving growing electricity demand.
Under the agreement, the investor group will acquire a 49% noncontrolling interest in the five projects, while Williams will retain a 51% ownership stake along with commercial and operational control.
The transaction provides approximately $4.4 billion toward expected project development costs and about $900 million in additional consideration to Williams. The company said the investment will help fund its existing portfolio while advancing a development backlog exceeding 6 GW.
Williams currently has more than 2.6 GW of announced behind-the-meter power projects, including Socrates, Apollo, Aquila, Socrates the Younger and Neo, which are designed to leverage the company's natural gas transportation and power infrastructure.
Williams President and CEO Chad Zamarin said the transaction strengthens the company's ability to expand its growing power portfolio.
"The investment from Blackstone, one of the world's premier alternative asset managers, and the further support from Apollo and KKR underscores the quality and importance of our turnkey energy infrastructure platform in serving rapidly growing power demand," Zamarin said.
He added that the investment will allow Williams to recycle capital into additional infrastructure opportunities while enhancing returns on existing projects.
Blackstone said the investment reflects growing demand for energy infrastructure supporting AI and data center expansion.
"Williams is a leader in meeting the country's rapidly growing power demands, including providing critical hard assets to serve the AI infrastructure buildout," said Robert Horn, Global Head of Infrastructure & Asset-Based Credit, and Rick Campbell, Senior Managing Director, Blackstone Credit & Insurance.
Williams said the transaction supports its long-term capital strategy while reducing financing requirements and maintaining its targeted leverage range.