Williams’ Atlantic Sunrise Natural Gas Pipeline Project Expected to Generate $1.6 Billion Economic Impact, Supporting More ...
16 March 2015 - 11:00PM
Business Wire
Williams (NYSE: WMB) today announced that the design and
construction of the Williams Atlantic Sunrise natural gas pipeline
project will generate approximately $1.6 billion in additional
wages, revenues and investments to the regional and state economies
of Pennsylvania and Virginia, according to a study authored by
researchers at The Pennsylvania State University.
“Economic Impacts of the Atlantic Sunrise Pipeline Project,”
lead author Seth Blumsack, Associate Professor of Energy Policy at
Penn State, finds that the proposed project would have a major,
positive economic impact on the Pennsylvania and Virginia economies
where new pipeline facilities would be built and operated.
According to the researchers, the design and construction of the
Williams Atlantic Sunrise pipeline project could support
approximately 8,000 jobs and an associated $870 million in economic
value added during the construction period. Additionally, the
ongoing operation of the pipeline would generate approximately $1.9
million in annual economic impact, supporting 29 jobs.
The economic modeling exercise was funded by Williams and uses
IMPLAN, a widely used commercial software designed to perform
input-output economic analysis, to estimate impacts on workforce
demands, economic output and value added to each of the counties
where construction is expected to occur. IMPLAN is used by state
governments across the nation for economic modeling and
predicting.
In a related report titled “Estimating the Impact of the
Atlantic Sunrise Project on Natural Gas Consumers,” lead author
Andrew Kleit, Professor of Energy and Environmental Economics at
Penn State, found that consumers served by the Transco pipeline in
the southeast and Mid-Atlantic regions could have saved $2.6
billion from 2012-2014 due to increased access to lower-priced
Pennsylvania gas supply because of Atlantic Sunrise.
“Penn State’s report clearly shows how vital this project and
others like it are for Pennsylvania’s economy,” said Pennsylvania
Chamber of Business & Industry President Gene Barr. “We need to
take advantage of all of our natural resources, and the best way to
do that is through more gas infrastructure. The Atlantic Sunrise
expansion to the Transco pipeline is projected to support thousands
of jobs during construction and thousands more in the drilling and
supply chain industries. All told, we are looking at the potential
for more than a billion dollars of economic activity as a result of
this project.”
Key findings from the analysis include:
- The design and construction of the
project will require an investment of approximately $3 billion by
Williams and the co-owner of the greenfield portion of the
project.
- The majority of the direct expenditures
will be in Pennsylvania, with some materials and labor sourced from
other states.
- The multi-year construction phase of
the project is expected to result in overall economic impact of
$1.6 billion and could engage 8,270 workers in Pennsylvania and
Virginia; the 10-county Pennsylvania region of the project is
expected to recognize the majority of this impact.
- The ongoing operations of the project
are predicted to generate an annual economic impact of $1.96
million and support 29 direct and indirect jobs in two Pennsylvania
counties (Columbia and Wyoming) where two new greenfield compressor
facilities are proposed.
- Significant federal, state and local
taxes would also be generated during the approximate one-year
construction phase, including an estimated $31 million in federal
taxes and $18 million in state taxes across all county locations
hosting construction activity for the project.
“Construction and ongoing operations of the project look to be
economically beneficial to the counties the pipeline would cross,
as well as to Pennsylvania and the region,” said Associate
Professor Seth Blumsack, John and Willie Leone Family Department of
Energy and Mineral Engineering, Pennsylvania State University.
The complete economic impact analysis is available at
www.williams.com/atlanticsunrise. The site contains an economic
impact tool that calculates economic impacts at each local
level.
The Atlantic Sunrise project is a proposed expansion of the
existing Transco natural gas pipeline, which currently transports
about 10 percent of the nation’s natural gas. The Atlantic Sunrise
project would add about 200 miles of new pipe to expand and extend
the reach of the existing Transco pipeline to northeastern
Pennsylvania, transporting about 1.7 billion cubic feet of clean,
natural gas per day – enough to serve approximately 7 million
homes.
“Anyone who has experienced a spike in their heating bills
understands the importance of this project. There is a critical
need for additional pipeline capacity in the region so that
northeastern consumers can realize the full benefit of lower-cost
energy,” said Transco General Manager Frank Ferazzi.
About Williams
Williams (NYSE: WMB) is a premier provider of large-scale
infrastructure to connect North American natural gas and natural
gas products to growing demand for cleaner fuel and feedstocks.
Headquartered in Tulsa, Okla., Williams owns approximately 60
percent of Williams Partners L.P. (NYSE: WPZ), including the
general-partner interest. Williams Partners is an industry-leading,
large-cap master limited partnership with operations across the
natural gas value chain from gathering, processing and interstate
transportation of natural gas and natural gas liquids to petchem
production of ethylene, propylene and other olefins. With major
positions in top U.S. supply basins and also in Canada, Williams
Partners owns and operates more than 33,000 miles of pipelines
system wide – including the nation’s largest volume and fastest
growing pipeline – providing natural gas for clean-power
generation, home heating and industrial use. Williams Partners’
operations touch approximately 30 percent of U.S. natural gas.
www.williams.com
Portions of this document may constitute “forward-looking
statements” as defined by federal law. Although the company
believes any such statements are based on reasonable assumptions,
there is no assurance that actual outcomes will not be materially
different. Any such statements are made in reliance on the “safe
harbor” protections provided under the Private Securities Reform
Act of 1995. Additional information about issues that could lead to
material changes in performance is contained in the company’s
annual reports filed with the Securities and Exchange
Commission.
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20150316005143/en/
WilliamsMedia Contact:Tom Droege,
918-573-4034orInvestor Contacts:John Porter,
918-573-0797orBrett Krieg, 918-573-4614
Williams Companies (NYSE:WMB)
Historical Stock Chart
From Apr 2024 to May 2024
Williams Companies (NYSE:WMB)
Historical Stock Chart
From May 2023 to May 2024